Question

The following costs and inventory data were taken from the accounts of Martinez Company for 20x9- Inventories: January 1,20x9 December 31,20x9 Work in process Finished goods 15,000 16,000 12.000 Due mo Costs incurred: Direct Materials used Direct labor Factory rent Factory utilities Indirect materials Indirect labor Selling expenses Administrative expenses $89,000 42,000 8,000 4,000 6,000 5,000 12,000 Instructions a. Prepare a schedule of Cost of Goods Manufactured for Martinez Company for the year ended December 31 20x9 in good form. b. Prepare the Cost of Goods Sold section of the Income Statement for Martinez Company for the year ended December 31, 20x9 in good form. A. Cost of Goods Manufactured For the year ended December 31, 20x9

Answer 1

ANS 1 Schedule of Cost of Goods Manufactured
Direct Materials Used	$89,000
Direct labor	$42,000
Manufacturing Overhead	$10,000
Indirect materials	$4,000
Indirect labor	$6,000
Total Manufacturing costs	$151,000
Add: Beginning work in process inventory	$15,000
	$166,000
Less: Ending work in process inventory	$13,000
Cost of Goods manufacturing	$153,000
ANS 2 Schedule of Cost of Goods Sold
Beginning finished goods	$16,000
Add: Cost of Goods manufacturing	$153,000
	$169,000
Less: Ending finished goods	$12,000
Cost of Goods Sold	$157,000