Sample Income Statement For Manufacturing Company

Next traditional cost systems.

Sample income statement for manufacturing company. Direct labour 250 000 00 add. Every time a company records a sale or an expense for bookkeeping purposes both the balance sheet and the income statement are affected by the transaction. A complete set of financial statements for the last period of operations may be. It is more rep resentative of the type found in practice.

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. Direct material begnning inventory 35 000 00 add. Purchases 93 900 00 freight in 1 100 00 total purchases 95 000 00 total raw material avaiable for production 130 000 00 less. 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.

Illustration 4 2 income statement boc hong company income statement for the year ended. Previous managerial versus financial accounting. May 31 a 50 000 materials purchased 950 000 710 000. Raw material ending 40 000 00 direct material used 90 000 00 add.

This statement is a condensed version of the more detailed income statement presented in illustration 4 2. By examining a sample balance sheet and income statement small businesses can better understand the relationship between the two reports. May 1 100 000 48 200 materials inventory. What is an income statement.

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. Rainier company yakima company materials inventory. Investors and business managers use the income statement to determine the profitability of the company it is one of three major financial statements required by gaap generally accepted accounting principles. C this is actual manufacturing overhead for the period and includes indirect materials indirect labor factory rent factory utilities and other factory related.

Financial statement of manufacturing company 1. In calculating cost of goods sold only the finished goods inventory account is used as shown. Manufacturing ovehead indirect labor 39 250 00 manufacturing. A from the company s balance sheet at april 30 april 30 ending balance is the same as may 1 beginning balance.

An income statement shows the income and expenses of a company over a specified period of time. The income statement for a manufacturing company is similar to that prepared for a merchandising company. Examples of service businesses are medical accounting or legal practices or a business that provides services such as plumbing cleaning consulting design etc. For example consider the income statement shown in illustration 4 3 for boc hong company.

B from the company s balance sheet at may 31.