Masay Company

Statement of Cost of Goods Manufactured

Year ended December 31, 2020

Raw materials, beginning 200,000

Purchases 3,000,000
Raw materials available for sale 3,200,000
Raw materials, ending 280,000
Raw materials used 2,920,000
Direct labor 950,000
Factory overhead
Indirect labor 250,000
Superintendence 210,000
Light, heat, and power 320,000
Rent- factory bldg 120,000
Repair and maintenance - machinery 50,000
Factory supplies used 110,000
Depreciation - machinery 60,000 1,120,000
Total manufacturing cost 4,990,000
Goods in process, beginning 240,000
Total cost of goods in process 5,230,000
Ending goods in process 170,000
Cost of gooods manufactured 5,060,000
 Masay Company
Income Statement
Year ended December 31, 2020 Year

Net Sales 1 7,450,000 Net Sales

Cost of goods sold 2 5,120,000 Other income
Gross income 2,330,000 Total income
Other income 3 210,000 Expenses
Total income 2,540,000 Decrease in finis
Expenses Raw materials us
Distribution costs 4 830,000 Direct labor
Administrative expenses 5 590,000 Factory overhea
Other expenses 6 300,000 1,720,000 Salaries
Income before tax 820,000 Advertising
Income tax expense 320,000 Depreciation
Net income 500,000 Delivery expense
Accounting legal
Office equipmen
Other expenses
Income before tax
Income tax expense
Net income

Note 1 Net sales revenue Note 1

Sales 7,500,000 Sales
Sales returns and allowances 50,000 Sales returns and allow
7,450,000

Note 2 Cost of goods sold Note 2

Finished goods, beginning 360,000 Interest income
Cost of gooods manufactured 5,060,000 Gain on sale of equipm
Goods available for sale 5,420,000 Gain from expropriatio
Ending finished goods 300,000
Cost of goods sold 5,120,000
Note 3
Note 3 Other income Finished goods
Interest income 10,000 Goods in process
Gain on sale of equipment 100,000
Gain from expropriation of asset 100,000
210,000 Note 4
Raw materials, beginn
Note 4 Distribution cost Purchases
Sales salaries 400,000 Raw materials availabl
Advertising 160,000 Raw materials, ending
Depreciation - store equipment 70,000 Raw materials used
Delivery expenses 200,000
 830,000 Note 5
Note 5 Administrative expenses Factory overhead
Office salaries 150,000 Indirect labor
Depreciation - office equipment 40,000 Superintendence
Accounting legal fees 150,000 Light, heat, and p
Other expenses 250,000 Rent- factory bld
590,000 Repair and main
Factory supplies
Note 5 Other expenses Depreciation - m
Earthquake loss 300,000

Note 6
Sales salaries
Office salaries

Note 7
Depreciation - store eq
Depreciation - office eq

Note 8
Earthquake loss
 Masay Company
Income Statement
Year ended December 31, 2020

1 7,450,000
Other income 2 210,000
Total income 7,660,000

Decrease in finished goods and goods in process 3 130,000

Raw materials used 4 2,920,000
Direct labor 950,000
Factory overhead 5 1,120,000
Salaries 6 550,000
Advertising 160,000
Depreciation 7 110,000
Delivery expenses 200,000
Accounting legal fees 150,000
Office equipment 250,000
Other expenses 8 300,000 6,840,000
Income before tax 820,000
Income tax expense 320,000
Net income 500,000

Net sales revenue

7,500,000
Sales returns and allowances 50,000
7,450,000

Other income
Interest income 10,000
Gain on sale of equipment 100,000
Gain from expropriation of asset 100,000
210,000

Beginning Ending Total

Finished goods 360,000 300,000 60,000
Goods in process 240,000 170,000 70,000
600,000 470,000 130,000

Raw materials, beginning 200,000

Purchases 3,000,000
Raw materials available for sale 3,200,000
Raw materials, ending 280,000
Raw materials used 2,920,000
Factory overhead
Indirect labor 250,000
Superintendence 210,000
Light, heat, and power 320,000
Rent- factory bldg 120,000
Repair and maintenance - machinery 50,000
Factory supplies used 110,000
Depreciation - machinery 60,000
1,120,000

Salaries
Sales salaries 400,000
Office salaries 150,000
550,000
Depreciation
Depreciation - store equipment 70,000
Depreciation - office equipment 40,000
110,000

Other expenses
Earthquake loss 300,000