Exercise on COGM, COGS and income statement PDF

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Exercise on COGM, COGS, and the income statement The post-adjustments accounting records of Costruzioni Meccaniche SpA at December 31, 2018, reported the following information: Inventories Materials Work in process Finished goods

Beginning 6,800 8,300 7,800

Accounts payable

Ending 2,400 11,000 13,500 5,900

Accounts receivable Advertising expense Depreciation of factory equipment Depreciation of office equipment Direct labor Direct materials

10,300 6,800 4,500 1800 21,000 80% of used materials

Income tax Indirect labor Indirect materials Interest expense Interest payable Lease of manufacturing equipment

12,000 28,000 20% of used materials 5,800 1,450 3,200

Own work capitalized Plant maintenance Prepaid lease expense Purchase of materials Research and development expense Sales commissions expense Sales revenue Stock dividends

2,000 3,500 800 43,000 5,200 3,800 115,000 15,000

Required – Choosing only the appropriate data among those presented above: a) Prepare a statement of cost of goods manufactured for the period ended December 31, 2018. b) Prepare a statement of cost of goods sold for the same period. c) Prepare an income statement using the cost of goods sold format, clearly showing the gross margin from sales and the operating income. d) Prepare an income statement using the value of production format, clearly showing the operating income....