Income Statement For A Manufacturing Company

Statement of cost of goods manufactured and income statement for a manufacturing company the following information is available for shanika company for 20y6.

Income statement for a manufacturing company. Principles of accounting volume 2. Next traditional cost systems. Principles of accounting volume 2. Since it is critical that managerial decision makers understand and use financial statement information it is essential that the serious student of management understand these basic financial statement relationships.

May 31 a 50 000 materials purchased 950 000 710 000. In calculating cost of goods sold only the finished goods inventory account is used as shown. Figure 1 7 income statement schedules for custom furniture company. Accounting accounting manufacturing income statement statement of cost of goods manufactured several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of may.

B from the company s balance sheet at may 31. Explain how the income statement of a manufacturing company differs from the income statement of a merchandising company. Rainier company yakima company materials inventory. The income statement format above is a basic one what is known as a single step income statement meaning just one category of income and one category of expenses and prepared specifically for a service business.

The income statement for a manufacturing company is similar to that prepared for a merchandising company. C this is actual manufacturing overhead for the period and includes indirect materials indirect labor factory rent factory utilities and other factory related. Other income operating versus non operating income operating income includes revenues and expenses directly related to the principal revenuegenerating activities of the company e g gains or losses from selling equipment other assets used in generating the revenue non operating income includes certain gains and. A from the company s balance sheet at april 30 april 30 ending balance is the same as may 1 beginning balance.

Examples of service businesses are medical accounting or legal practices or a business that provides services such as plumbing cleaning consulting design etc. May 1 100 000 48 200 materials inventory. The income statement of a manufacturing company is one of the most important financial statements of the company. A complete set of financial statements for the last period of operations may be.

Inventories january 1 december 31 materials 373 870 471 080 work in process 672 970 640 670 finished goods 646 800 654 800 advertising expense 319 860 depreciation expense office equipment.