Question

The Richards Company manufactures a single product. All raw materials used are traceable to specific units of product. Current Information for the Richards Company follows: Beginning raw materials inventory Ending raw materials inventory Raw material purchases Beginning work in process inventory Ending work in process inventory Direct labor Total factory overhead Beginning finished goods inventory Ending finished goods inventory $ 15,000 17,000 95,000 45,000 30,000 135,000 65,000 60,000 50,000 The company's cost of raw materials used, cost of goods manufactured and cost of goods sold Is: Multiple Cholce Cost of Materials Used $95,000 Cost of Goods Manufactured $308,0ee Cost of Goods Sold $298,e0e $97,000 $308,0ee $318,e0e $93,000 $278,0ee $298,e0e

Answer 1

Solution 1:

Computation of cost of material used, cost of goods manufactured and cost of goods sold
Particulars	Amount
Beginning raw material inventory	$15,000.00
Add: Raw material purchases	$95,000.00
Less: Ending raw material inventory	$17,000.00
Cost of material used	$93,000.00
Direct labor	$135,000.00
Factory overhead	$65,000.00
Total manufacturing cost incurred	$293,000.00
Add: Beginning WIP	$45,000.00
Less: Ending WIP	$30,000.00
Cost of goods manufactured	$308,000.00
Add: Beginning finished goods inventory	$60,000.00
Less: Ending finished goods inventory	$50,000.00
Cost of goods sold	$318,000.00

Solution 2:

Computation of cost of goods manufactured
Particulars	Amount
Direct material used	$41,100.00
Direct labor	$31,200.00
Factory overhead:
Indirect material	$14,100.00
Indirect labor	$6,900.00
Depreciation - Factory equipment	$8,100.00
Total manufacturing cost incurred	$101,400.00
Add: Beginning WIP	$7,800.00
Less: Ending WIP	$9,600.00
Cost of goods manufactured	$99,600.00