Question

uring April, the Meade Enterprises had the following operating results: Sales revenue $ 1,590,000 Gross margin $ 645,000 Ending work-in-process inventory $ 54,500 Beginning work-in-process inventory $ 89,000 Ending finished goods inventory $ 104,500 Beginning finished goods inventory $ 134,000 Marketing costs $ 259,000 Administrative costs $ 159,000 What is the cost of goods manufactured for April

Answer 1

Answer:

Cost of goods manufactured for April is $915,500

Explanation:

The costs of goods manufactured can be ascertained by adding closing inventory of goods to costs of sales and deducting opening inventory of goods manufactured.

The costs of good sold is simply sales revenue minus gross margin

sales revenue is $1,590,000

gross margin is $645,000

costs of goods sold=$1,590,000-$645,000=$945,000

Cost of goods manufactured =$945,000+$104,500-$134,000=$915,500

This is similar to a typical income statement but the difference lies in working backwards to arrive at the costs of goods manufactured by deducting opening stock of finished goods while adding the closing inventory of finished goods.

Answer 2

Answer:

$915,500

Explanation:

Meade Enterprises

Sales revenue $ 1,590,000

Less Gross margin $ 645,000

Cost of goods sold $945,000

Hence;

Beginning finished goods inventory $ 134,000

Less Ending finished goods inventory $ 104,500 =$29,500

Thus:

Cost of goods sold $945,000 -$29,500

=$915,500 cost of goods manufactured for April

Therefore the cost of goods manufactured for April will be $915,500