Answer:
Part a
Direct Materials Schedule
Beginning Materials                               $ 8,000
<em>Add</em> Purchases                                      $83,000
<em>Less</em> Ending Materials                          ($ 7,000)
<em>Less</em> Indirect materials                          ($4,000)
Direct Materials Used in Production    $80,000
Part b
Overheads Incurred during the year
                                      $
Factory rent                  8,000
Factory utilities            10,000
Indirect materials          4,000
Indirect labor                 6,000
Total Overheads       $28,000
Part c
Cost of Goods Manufactured Schedule
Direct Materials                                   $80,000
Direct labor                                          $42,000
Overheads                                           $28,000
Add Opening Work In Process           $15,000
Less Closing Work In Process           ($13,000)
Cost of Goods Manufactured           $152,000
Part d
Cost of Goods Sold
Beginning Finished goods Inventory       $16,000
Add Cost of Goods Manufactured         $152,000
Less Ending Finished Goods Inventory ($12,000)
Cost of Goods Sold                                 $156,000
Explanation:
The following steps must be done to reach the cost of goods sold :
- Use the Manufacturing Cost Schedule to calculate the Cost of Goods Manufactured
- Use the Finished Goods Inventory Account to calculate the Cost of Goods Sold.
See the calculations and schedules prepared above.