Question

Compute the cost of Goods Manufactured and Cost of Goods Sold for Strike Gold Company for the most recent year using the amounts described next. Assume that Raw Materials Inventory contains only direct materials (Click the icon to view the data) Strike Gold Company Calculation of Direct Materials Used For Current Year Beginning raw materials inventory Plus: Purchases of direct materials Materials available for use Less Ending raw materials inventory Direct materials used Choose from any list or enter any number in the input fields and then click Check Answer

Answer 1

Strike Gold Company
Calculation of Direct Materials Used
For Current Year
Beginning raw materials inventory	26,000
Plus: Purchases of raw materials	79,000
Materials available for use	105,000
Less: Ending raw materials inventory	-30,000
Direct materials used	$75,000

Strike Gold Company
Calculation Cost of Goods Manufactured
For Current Year
Direct materials used	75,000
Direct labor	82,000
Manufacturing overhead:
Indirect labor	45,000
Insurance on plant	11,500
Depreciation -plant building and equipment	13,300
Repair and maintenance - plant	4,200
Total manufacturing cost	231,000
Work in process inventory, beginning	38,000
Work in process inventory, ending	-35,000
Cost of goods manufactured	$234,000

Strike Gold Company
Calculation Cost of Goods Sold
For Current Year
Finished goods inventory, beginning	20,000
Cost of goods manufactured	234,000
Cost of goods available for sale	254,000
Finished goods inventory, ending	-24,000
Cost of goods sold	$230,000

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