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The following information is available for Aikman Company. January 1, 2017 2017 December 31, 2017 Raw materials inventory $21,240 $32,930 Work in process inventory 16,990 18,070 Finished goods inventory 30,180 24,300 Materials purchased $154,190 Direct labor 224,280 Manufacturing overhead 184,560 Sales revenue 903,230 Compute cost of goods manufactured. Aikman Company Cost of Goods Manufactured Schedule Prepare an income statement through gross profit. AIKMAN COMPANY Income Statement (Partial) Show the presentation of the ending inventories on the December 31, 2017, balance sheet. AIKMAN COMPANY (Partial) Balance Sheet

(a) Compute cost of goods manufactured
Work in process, Jan 1 16,990
Direct Materials
Materials inventory 21,240
Materials purchased 154,190
Materials available for use 175,430
Less Materials Inventory, Dec 31 -32,930
Direct Materials used 142,500
Direct Labor 224,280
Manufacturing overhead 184,560
Total Manufacturing costs 551,340
Total cost of Work in process 568,330
Less Work in process, Dec 31 -18,070
Cost of Goods Manufactured 550,260
(b) Prepare an income statement through gross profit
Sales 903,230
Cost of Goods Sold
Finished Goods, Jan 1 30,180
Cost of Goods Manufactured 550,260
Cost of Goods Available for Sale 580,440
Less Finished Goods, Dec 31 -24,300
Total COGS 556,140
Gross Profit 347,090
(c) Show the presentation of the ending inventories on the December 31, 2017, balance sheet.
Aikman Company
Balance sheet (partial)
31-Dec-17
Current Assets
Inventories
Finished Goods 24,300
Work in Process 18,070
Raw Materials 32,930 75,300
 
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