Question

Cost of Goods Manufactured for a Manufacturing Company Two items are omitted from each of the following three lists of cost of goods manufactured statement data. Determine the amounts of the missing items, identifying them by letter. Work in process inventory, August 1 $19,660 $41,650 (e) Total manufacturing costs incurred during August 332,750 (c) 1,075,000 Total manufacturing costs (a) $515,770 $1,240,000 Work in process inventory, August 31 23,500 54,000 (f) Cost of goods manufactured (b) (d) $1,068,000 a. $ b. $ c. $ d. $ e. $ f. $

Answer 1

Answer:

(A) 352,410

(B) 328,910

(C) 474,120

(D) 461,770

(E) 165,000

(F) 175,000

Explanation:

1.- WIP, August 1st:        $    19,660  $   41,650           (e)

2.- Cost added               $ 332,750        (c)         $ 1,075,000

3.- Subtotal                            (a)        $ 515,770  $ 1,240,000

4.- WIP, August 31th       $  23,500   $  54,000         (f)

5.- COGM                              (b)              (d)         $1,068,000

The identity to solve for this is as follow:

$beginning WIP + cost added = COGM + ending WIP$

The third row is the sum of the left side of the of the equation.

beginning WIP + cost added.

(a) 332,750 + 19,660 = 352,410

(c) 515,770 - 41,650 = 474,120

(e) 1,240,000 - 1,075,000 = 165,000

COMG will be third row less fourth row

the ending WIP subtracted from the left side

(b) 352,410 - 23,500 = 328,910

(d) 515,770 - 54,000 =  461,770

(f) 1,240,000 - 1,068,000 = 175,000