Question

Raw Materials Inventory Begin. Inv. 12,400 Purchases 47,000 Avail. for use 59,400 DM used 50,000 End. Inv. 9,400 Work in Process Inventory Begin. Inv. 15,800 DM used 50,000 Direct labor 33,300 Overhead 69,000 Manuf. costs 168,100 Cost of goods manuf. 155,200 End. Inv. 12,900 Finished Goods Inventory Begin. Inv. 17,800 Cost of goods manuf. 155,200 Avail. for sale 173,000 Cost of Goods Sold 152,500 End. Inv. 20,500 Required: 1. Prepare the schedule of cost of goods manufactured for the year. 2. Compute cost of goods sold for the year.

Answer 1

Answer:

Results are below.

Explanation:

Giving the following information:

Direct Material used= 50,000

Work in Process Inventory Begin. Inv. 15,800

Direct labor 33,300

Overhead 69,000

WIP End. Inv. 12,900

To calculate the cost of goods manufactured, we need to use the following formula:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 15,800 + 50,000 + 33,300 + 69,000 - 12,900

cost of goods manufactured= $155,200

Finished Goods Inventory Begin. Inv. 17,800

Finished Goods Inventory End. Inv. 20,500

To calculate the cost of goods sold, we need to use the following formula:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 17,800 + 155,200 - 20,500

COGS= $152,500