Question

The following costs and inventory data were taken from the accounts of Bodhisatva Corporation at December 31, 2018

January 1, 2018                                   December 31, 2018

Inventories:

            Raw materials                        $15,500                                               $11,000

            Work in process                      22,000                                               31,000

            Finished Goods                          8,500                                               12,500

Costs incurred:

            Raw materials purchases                                                                    $72,000

            Direct Labor                                                                                       42,000

            Property Taxes - Factory                                                                    24,000

            Office rent                                                                                             8,000

            Factory utilities                                                                                      4,000

            Indirect materials                                                                                   7,000

            Indirect labor                                                                                          5,000

Prepare a schedule of cost of goods manufactured for the year ended December 31, 2018.

Prepare a schedule of cost of goods sold for the year ended December 31, 2018.

Answer 1

Schedule of Cost of goods manufactured for the year ended December 31, 2018.

Particular		Amount($)
Beginning raw materials	15,500
Purchases	72,000
Less: Closing raw material	(11,000)
Total raw material used	76,500	76,500
Direct labor		42,000
Property taxes factory		24,000
Office rent		NA
Factory Utilities		4,000
Indirect material		7,000
Indirect labor		5,000
Opening work in process		22,000
Less: Closing work in process		(31,000)
Cost of goods manufactured		149,500

Schedule of Cost of goods sold for the year ended December 31, 2018.

Particular	Amount($)
Beginning inventory of finished goods	8,500
Cost of goods manufactured	149,500
Less: Closing inventory of finished goods	(12,500)
Cost of goods sold	145,500