Question

Annapolis Company manufactures quality boating apparel. The following selected financial information for the fiscal year 2018 is provided: Item Amount Sales $850,000 Beginning Raw Material Inventory 74,000 Direct Material Purchased 308,000 Factory Overhead 90,000 Finished Goods Inventory - January 1 144,000 Work in Process - January 1 74,000 Work in Process - December 31 98,000 Ending Raw Material Inventory 58,000 Finished Goods Inventory - December 31 168,000 Net Income 65,000 Direct Labor 155,000 Cost of Goods Sold 655,000 Use this information to prepared a detailed Schedule of Costs of Goods Manufactured for FY 2018: (Round dollar values & enter as whole dollars only. Properly title your statement.)

Answer 1

Answer:

Annapolis Company Schedule of Cost of Goods Manufactured: Direct Materials: Beginning Raw Materials Inventory $ 74,000 Add: Purchases of Raw Materials $ 308,000 Total raw materials available (74,000 + 308,000) $ 382,000 Less: Ending Raw Materials Inventory $ (58,000) Raw Materials used in production (382,000 - 58,000) Direct Labor Factory Overhead Total manufacturing costs (324,000 + 155,000 + 90,000) Add: Work in process, inventory, 1st January, 2018 Total Work in Process (569,000 + 74,000) Less: Ending Work in process, 31 December, 2018 Cost of goods manufactured (643,000 - 98,000) $ $ $ 324,000 155,000 90,000 $ 569,000 $ 74,000 $ 643,000 $ (98,000) $ 545,000