COST OF PRODUCTS SOLD REPORT

DIRECT MATERIALS
Initial inventory of materials 15,000
More Material Purchases 43,000
More freight on material purchases 1,000
Same Gross Purchases 44,000
Fewer returns and discounts on purchases 4,000
Equal Net Purchases 40,000
Total Materials Available for use 55,000
Less Final Inventory of Materials 5,000
Total materials used 50,000

DIRECT LABOR
Factory Payroll 20,000
Less Indirect Labor 0
Total Direct Labor 20,000

INDIRECT MANUFACTURING COSTS

Indirect Materials 0
indirect labor 0
Factory leases
0
Factory depreciation
Water, electricity and telephone factory 0
Insurance factory 0
10,000
Total Indirect Manufacturing Costs 10,000
TOTAL PRODUCTION COSTS 80,000
More Initial Inventory of Products Processes 10,000
Total Process Product Costs 90,000
Less Final Inventory of Products Processes 8,000
Total Costs of Finished Products 82,000
More Initial Inventory of Finished Goods
5,000
Total Cost of Products Available for Sale
87,000
Less Final Inventory of Finished Goods
7,000
Total Cost of Products Sold
80,000
 ABC INDUSTRIES LTDA
STATEMENT OF INCOME
Cut Date December 31

Ordinary Income (sales) 128,000

DIRECT MATERIALS 1
DIRECT LABOR 1
INDIRECT MANUFACTURING COSTS 1
TOTAL PRODUCTION COSTS 1
Total Process Product Costs 1
Total Costs of Finished Products 1
DIRECT MATERIALS 5
DIRECT LABOR 5
INDIRECT MANUFACTURING COSTS 5
TOTAL PRODUCTION COSTS 5
Total Process Product Costs 5
Total Costs of Finished Products 5
DIRECT MATERIALS 8
DIRECT LABOR 8
INDIRECT MANUFACTURING COSTS 8
TOTAL PRODUCTION COSTS 9
Total Process Product Costs 9
Total Costs of Finished Products 9

Same Earnings Before Taxes 26,000

Less Income Tax 31% 8,060 17,940
Less Legal Reserve 10% Equal Net Profit 1,794
16,146
 COST OF PRODUCTS SOLD REPORT

DIRECT MATERIALS 800

3,000
Initial inventory of materials
180Material Purchases
More
3,180
More freight on material purchases
450
Same Gross Purchases
2,730
Fewer returns and discounts on purchases
3,530
Equal Net Purchases
450
Total Materials Available for use Less Final
Materials Inventory
Total materials used

DIRECT LABOR
Factory Payroll
Less Indirect Labor
Total Direct Labor

INDIRECT MANUFACTURING COSTS

Indirect Materials
indirect labor
Factory leases
Depreciation of machinery and equipment 3,000
Other manufacturing overhead 750

230
750
150
120
50

Total Indirect Manufacturing Costs

TOTAL PRODUCTION COSTS
More Initial Inventory of Products Processes
Total Process Product Costs
Less Final Inventory of Products Processes
Total Costs of Finished Products
Plus Initial Inventory of Finished Goods
Total Cost of Products Available for Sale
Less Final Inventory of Finished Goods
Total Cost of Products Sold
COST OF PRODUCTS SOLD REPORT
3,080

2,250
 STATEMENT OF INCOME
Cut Date December 31

Ordinary Income (sales)

Fewer returns and discounts
DIRECT MATERIALS...............................................................1
DIRECT LABOR........................................................................1
INDIRECT MANUFACTURING COSTS.................................1
TOTAL PRODUCTION COSTS................................................1
Total Process Product Costs........................................................1
Total Costs of Finished Products.................................................1
DIRECT MATERIALS...............................................................5
DIRECT LABOR........................................................................5
INDIRECT MANUFACTURING COSTS.................................5
TOTAL PRODUCTION COSTS................................................5
Total Process Product Costs........................................................5
Total Costs of Finished Products.................................................5
DIRECT MATERIALS...............................................................8
DIRECT LABOR........................................................................8
1,300 INDIRECT MANUFACTURING COSTS.................................8
6,630 TOTAL PRODUCTION COSTS................................................9
60
Total Process Product Costs........................................................9
6,690
240 Total Costs of Finished Products.................................................9
6,450
750
7,200
Less Income Tax 31% 0
Less Legal Reserve 10% 0
1,200
6,000
Equal Net Profit 0
ONLY THE COST REPORT IS REQUESTED
 COST OF PRODUCTS SOLD REPORT

DIRECT MATERIALS
Initial inventory of materials 23,000
More Material Purchases 90,000
DIRECT MATERIALS 1
DIRECT LABOR 1
INDIRECT MANUFACTURING COSTS 1
TOTAL PRODUCTION COSTS 1
Total Process Product Costs 1
Total Costs of Finished Products 1
DIRECT MATERIALS 5
DIRECT LABOR 5
INDIRECT MANUFACTURING COSTS 5
TOTAL PRODUCTION COSTS 5
Total Process Product Costs 5
Total Costs of Finished Products 5
DIRECT MATERIALS 8
DIRECT LABOR 8
INDIRECT MANUFACTURING COSTS 8
TOTAL PRODUCTION COSTS 9
Total Process Product Costs 9
Total Costs of Finished Products 9

Less Final Inventory of Materials 27,500

Total materials used

DIRECT LABOR
Factory Payroll 50,000
Less Indirect Labor 20,000
Total Direct Labor

INDIRECT MANUFACTURING COSTS

 COST OF PRODUCTS SOLD REPORT

DIRECT MATERIALS 1
DIRECT LABOR 1
INDIRECT MANUFACTURING COSTS 1
TOTAL PRODUCTION COSTS 1
Total Process Product Costs 1
Total Costs of Finished Products 1
DIRECT MATERIALS 5
DIRECT LABOR 5
INDIRECT MANUFACTURING COSTS 5
TOTAL PRODUCTION COSTS 5
Total Process Product Costs 5
Total Costs of Finished Products 5
DIRECT MATERIALS 8
DIRECT LABOR 8
INDIRECT MANUFACTURING COSTS 8
TOTAL PRODUCTION COSTS 9
Total Process Product Costs 9
Total Costs of Finished Products 9

Total Indirect Manufacturing Costs

TOTAL PRODUCTION COSTS
More Initial Inventory of Products Processes
Total Process Product Costs
Less Final Inventory of Products Processes
Total Costs of Finished Products
More Initial Inventory of Finished Goods
Total Cost of Products Available for Sale
Less Final Inventory of Finished Goods
Total Cost of Products Sold
85,500

30,000

47,600 STATEMENT OF INCOME

163,100 Cut Date December 31
35,000
198,100 Ordinary Income (sales) 290,000
18,500 Less Cost of Goods Sold 160,000
179,600 Equal Contribution Margin (gross profit) 130,000
8,400 Plus Other Income 0
188,000 Less Sales Expenses 30,000
28,000 Less Administration Expenses 45,000
160,000 Less Other Expenses 0
Less Financial Expenses 3,200
Same Earnings Before Taxes 51,800
Less Income Tax 31% 16,058
Less Legal Reserve 10% Equal Net Profit 3,574
32,168
35,742
 COST OF PRODUCTS SOLD REPORT

DIRECT MATERIALS
DIRECT MATERIALS...........................................................................................................................1
DIRECT LABOR....................................................................................................................................1
INDIRECT MANUFACTURING COSTS.............................................................................................1
TOTAL PRODUCTION COSTS............................................................................................................1
Total Process Product Costs....................................................................................................................1
Total Costs of Finished Products.............................................................................................................1
DIRECT MATERIALS...........................................................................................................................5
DIRECT LABOR....................................................................................................................................5
INDIRECT MANUFACTURING COSTS.............................................................................................5
TOTAL PRODUCTION COSTS............................................................................................................5
Total Process Product Costs....................................................................................................................5
Total Costs of Finished Products.............................................................................................................5
DIRECT MATERIALS...........................................................................................................................8
DIRECT LABOR....................................................................................................................................8
INDIRECT MANUFACTURING COSTS.............................................................................................8
TOTAL PRODUCTION COSTS............................................................................................................9
Total Process Product Costs....................................................................................................................9
Total Costs of Finished Products.............................................................................................................9

Total Indirect Manufacturing Costs

TOTAL PRODUCTION COSTS
More Initial Inventory of Products Processes
Total Process Product Costs
Less Final Inventory of Products Processes
Total Costs of Finished Products
More Initial Inventory of Finished Goods
Total Cost of Products Available for Sale
Less Final Inventory of Finished Goods
Total Cost of Products Sold
13,200

2,112

STATEMENT OF INCOME
Cut Date December 31

Ordinary Income (sales)

Less Cost of Goods Sold
Equal Contribution Margin (gross profit)
Plus Other Income
Less Sales Expenses
Less Administration Expenses
Less Other Expenses
3,780
Less Financial Expenses
19,092
Same Earnings Before Taxes
600 Less Income Tax 31%
19,692
1,200
18,492
Less Legal Reserve 10%
Equal Net Profit
30,000 16,692 13,308 0
900
400
200
 0
11,808 COST OF PRODUCTS SOLD REPORT
3,660
815
7,333
DIRECT MATERIALS
DIRECT MATERIALS..............................................................................................................................1
DIRECT LABOR.......................................................................................................................................1
INDIRECT MANUFACTURING COSTS................................................................................................1
TOTAL PRODUCTION COSTS...............................................................................................................1
Total Process Product Costs.......................................................................................................................1
Total Costs of Finished Products................................................................................................................1
DIRECT MATERIALS..............................................................................................................................5
DIRECT LABOR.......................................................................................................................................5
INDIRECT MANUFACTURING COSTS................................................................................................5
TOTAL PRODUCTION COSTS...............................................................................................................5
Total Process Product Costs.......................................................................................................................5
Total Costs of Finished Products................................................................................................................5
DIRECT MATERIALS..............................................................................................................................8
DIRECT LABOR.......................................................................................................................................8
INDIRECT MANUFACTURING COSTS................................................................................................8
TOTAL PRODUCTION COSTS...............................................................................................................9
Total Process Product Costs.......................................................................................................................9
Total Costs of Finished Products................................................................................................................9

Total Indirect Manufacturing Costs

TOTAL PRODUCTION COSTS
More Initial Inventory of Products Processes
Total Process Product Costs
Less Final Inventory of Products Processes
Total Costs of Finished Products
More Initial Inventory of Finished Goods
Total Cost of Products Available for Sale
Less Final Inventory of Finished Goods
Total Cost of Products Sold
 COST OF PRODUCTS SOLD REPORT

2,000

800

1,200 STATEMENT OF INCOME

4,000 Cutting Date December 31
1,000

5,000 Ordinary Income (sales) 10,000

500 Less Cost of Goods Sold 5,000
4,500 Equal Contribution Margin (gross profit) 5,000
800 Plus Other Income 800
5,300 Less Sales Expenses 600
300 Less Administration Expenses 1,000
5,000 Less Other Expenses 800
Less Financial Expenses 50
Same Earnings Before Taxes 3,350
Less Income Tax 31% 1,039
Less Legal Reserve 10% 231
Equal Net Profit 2,080