Question

Problem (10 points) Ogleby Inc.'s accounting records reflect the following inventories (in $1,000) Dec. 31.2018 Raw materials inventory 120 156 150 96 174 138 Work in process inventory Finished goods inventory During 2018, Ogleby purchased s980 of raw materials, incurred direct labor costs of $175. Manufacturing overhead was $224. Calculate: a. Product costs (6 points) b. Cost of Goods Manufactured (2 points) c. Cost of Goods Sold (2 points)

Answer 1

Manufacturing Statement
Particulars	Amount($)	Amount($)	Amount($)
Direct Materials
Rawmaterials Inventory Dec 31 2017	120000
Add: Raw materials Purchases	980000
Rawmaterials Available for use	1100000
Less: Rawmaterials Inventory Dec 31 2018	96000
Direct Materials Used		1004000
Incurred Direct Labor Cost		175000
Factory Overhead		224000
Total Manufacturing Cost			1403000
Add: Work in Process Inventory Dec31, 2017			156000
Total Cost of Goods in Process			1559000
Less: Work in Process Inventory Dec31, 2018			174000
Cost of Goods Manufactured			1385000

Cost Of Goods Sold Statement
Particulars	Amount($)
Finished Goods Inventory Dec31,2017	150000
Add: Cost of Goods Manufactured	1385000
Goods Avilable for sale	1535000
Less: Finished Goods Inventory Dec31,2018	138000
Cost Of Goods Sold	1397000

Direct Materials Used		1004000
Incurred Direct Labor Cost		175000
Factory Overhead		224000
Product Costs		1403000