Question

Stanky Company had the following journal entries related to production for the period Work-in-Process 11,500 Raw Materials 11,500 Manufacturing Overhead 7,500 Cash and Payables 7,500 Work-In-Process 8,500 Wages Payable 8,500 Work-In-Process 7,200 Manufacturing Overhead 7,200 Finished Goods 24,025 Work-In-Process 24,025 The beginning and ending balance in Finished Goods Inventory is $1,980 and $3,960 respectively. What amount would be reported for 'Adjusted' Cost of Goods Sold

Answer 1

Answer:

Stanky Company

The amount that would be reported for  'Adjusted' Cost of Goods Sold is:

= $22,045

Explanation:

a) Data and Calculations:

Debit Work-in-Process 11,500

Credit Raw Materials 11,500

Debit Manufacturing Overhead 7,500

Credit Cash and Payables 7,500

Debit Work-In-Process 8,500

Credit Wages Payable 8,500

Debit Work-In-Process 7,200

Credit Manufacturing Overhead 7,200

Debit Finished Goods 24,025

Credit Work-In-Process 24,025

Work-in-Process

Raw Materials                    11,500

Wages Payable                  8,500

Manufacturing Overhead 7,200

Total                              $27,200

Finished goods             (24,025)

Balance of WIP                $3,175

Finished Goods Inventory:

Beginning                  $1,980

Work-In-Process      24,025

Ending                      (3,960)

Cost of good sold $22,045