Answer:
All figures are imaginary .
Explanation:
West Nautical Company
<u>Cost of Goods Manufactured (in millions). and Sold</u>
<u>Dr Cr
</u>
(000) (000)
Direct Materials (opening Inventory) 30,000
Add Purchases 10,000
Less Ending Inventory 6000
Direct Materials Used 34,000
Conversion Costs
Add Direct Labor 21,000
Factory Over Head
Indirect Materials 50
Indirect Labor 14,000
Rent On Factory Building 3000
Depreciation (equip) 5000
Utilities 4000
Property Tax 2000
Insurance 1000
Total Factory Overhead/ Total Manufacturing Costs 29,050
Deduct Under applied Overhead <u> 250 </u>
<u> Overhead applied to work in process 28,800</u>
<u />
Total Manufacturing Costs <u> 83,800</u>
Add Beginning Work In Process 4000
Total Goods in Process 87,800
Less Ending Work In Process 39,800
Cost Of Goods Manufactured 48000
Add opening Finished Goods 12,000
Cost of Goods Available for Sale 60,000
Less Closing Finished Goods 24000
Cost Of Goods Sold 36000
Add underapplied overhead 250
Cost of goods Sold ( adjusted for under applied overhead** ) 36,250
** The company closes under applied or over applied overhead into cost of goods sold . Hence, $ 250 balance in under applied overhead is added to the cost of goods sold for the month.
