Question

Please show all work

The following information is available for Booker Company for 2019 (all numbers in dollars Beginning Finished Goods Beginning Materials Beginning WIP Direct Labor Ending Finished Goods Ending Materials Ending WIP Manufacturing Overhead Purchases (materials) Sales 1,375,200 856,000 725,000 836,700 1,145,670 871,350 697,300 2,579,220 10,025,000 Note: gross profit is 40% of sales Required: Prepare a statement of cost of goods sold and a statement of cost of goods

Answer 1

CALCULATIONS:

Sales	$10,025,000
Gross profit (10,025,000 x 40%)	($4,010,000)
Cost of goods sold	$6,015,000
Add: Ending Finished Goods	$1,145,670
(less): Beginning finished goods	($1,375,200)
Cost of goods manufactured	$5,785,470
Add: Ending WIP	$697,300
(less): Beginning WIP	($725,000)
Total manufacturing costs	$5,757,770
(less): Direct Labor	($836,700)
(less): Manufacturing Overhead	($2,579,220)
Direct materials used	$2,341,850
Add: Ending Materials	$871,350
(less): Beginning Materials	($856,000)
Purchases (materials)	$2,357,200

ANSWER:

Statement of Cost of goods sold:

Statement of Cost of goods sold
Beginning Materials	856,000
Purchases (materials)	2,357,200
Ending Materials	-871,350
Direct materials used in production	2,341,850
Direct Labor	836,700
Manufacturing Overhead	2,579,220
Total manufacturing costs	5,757,770
Add: Beginning WIP	725,000
(Less): Ending WIP	-697,300
Cost of goods manufactured	5,785,470
Add: Beginning Finished Goods	1,375,200
(Less): Ending Finished Goods	-1,145,670
Cost of goods sold	6,015,000

Statement of cost of goods manufactured:

Statement of Cost of goods sold
Beginning Materials	856,000
Purchases (materials)	2,357,200
Ending Materials	-871,350
Direct materials used in production	2,341,850
Direct Labor	836,700
Manufacturing Overhead	2,579,220
Total manufacturing costs	5,757,770
Add: Beginning WIP	725,000
(Less): Ending WIP	-697,300
Cost of goods manufactured	5,785,470