Question

Cost of goods sold statement: The following data relate to the Brockway Corporation Inventories Ending Beginning Finished goods……………………………………………………………………… $95,000 $110,000 Work in process…………………………………………………………………… 80,000 70,000 Direct Materials……………………………………………………………………. 95,000 90,000 Cost incurred during the period: Costs of goods available for sales…………………………………………………………… $684,000 Total manufacturing cost……………………………………………………………………….. 584,000 Factory overhead…………………………………………………………………………………… 167,000 Direct materials used……………………………………………………………………………….. 193,000 Required: Cost of goods sold statement

Answer 1

Cost of goods sold statement

Beginning direct materials 90,000
+ Purchases of direct materials 198,000
- Ending direct materials - 95,000
Direct materials used	193,000
Direct labor	234,000*
Factory overheads	167,000
Beginning work in process	70,000
- Ending work in process	- 80,000
Total manufacturing cost	584,000
Administrative overheads	100,000*
Cost of goods available for sale	684,000
Beginning inventory of finished goods	110,000
Ending inventory of finished goods	- 95,000
Cost of goods sold	699,000

* Direct labor and Administrative overheads have been calculated as balancing figures.

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