Answer:
<u><em>Cost of Goods Manufactured $705,000</em></u>
<u><em>Adjusted cost of goods sold $655,000</em></u>
Explanation:
<u>Cost of Goods Manufactured Schedule</u>
Beginning Raw materials $ 55,000
Add Purchases of raw materials $ 267,000
Less Ending Raw materials $ 32,000
Direct Materials Used $ 290,000
Direct labor ? $ 25,000
Add Manufacturing overhead applied to work in process $ 365,000
The total manufacturing costs for the year were $680,000;
Total Mfg Costs- Mfg OH - DM- DL
($680,000-$ 365,000 -$ 290,000= $ 25,000)
Add Beginning Work in process ? $ 89,000
$ 769,000- $680,000= $ 89,000
Cost of Goods Available for Manufacture $ 769,000
$705,000+$ 24,000=$ 769,000
Less Ending Work in process $ 24,000
Cost of Goods Manufactured $705,000
($745,000-$ 40,000 =$705,000)
<u>Cost of Goods Sold Schedule</u>
Cost of Goods Manufactured $705,000
Add Beginning Finished goods $ 40,000
The cost of goods available for sale totaled $745,000
Less Ending Finished goods ? $ 77000
($745,000-$668,000= $ 77000)
The unadjusted cost of goods sold totaled $668,000
Less Over applied Manufacturing Overhead ($ 365,000 -$ 352,000 ) 13000
The adjusted cost of goods sold totaled $655,000
Notes :
We add and subtract as per given schedule but then there are balances missing. So we do reverse functions and start at the bottom to get the desired balances by adding or subtracting . The workings for each step have been given in the brackets underneath the step.
