Question

Hi, I need help with my assignment please.

2. Prepare a schedule of cost of goods and card for the month onded nary 31, 2016 Do 2.000 Factory overhead 5550 Derecsbor $1.100 Begring work in pr o ne December 31, 2015) Ending work in proces nary 31, 2016 Beginning finished goods inwentary on December 31, 2015) Ending the goods inventory $330 r y 31, 2016) BUSINESS SOLUTIONS Schedule of Cost of Goods Manufactured For Month Ende January 31, 2015 Tomaatung Tot of goods in anded January 31, 2015 USNESS SOLUTIONS

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Answer 1

1. We arrive at cost of goods manufactured as follows:

Direct Materials (A)	2000
Direct labor (B)	1100
Prime Cost (C = A+B)	3100
Factroy Overhead (D)	560
Total Manufcaturing costs (C+D)	3660
Add: Opening WIP	0
	3660
Less: Closing WIP (Total cost of goods in progress)	560
Cost of goods manufactured	3100

2.Next we compute cost of goods sold as follows:

Cost of goods manufactured	3100
Less: Ending finished inventory (goods available for sale)	330
Cost of goods sold	2770