Question

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Example #8 compute Cost of Goods Manufactured and Cost of Goods Sold using the following information: Beginning of Year End of Year Raw Materials Inventory $25,000 $28,000 Work in Process Inventory $50,000 $35,000 Finished Goods Inventory $25,000 $18,000 $78,000 Purchases of Direct Materials $82,000 Direct Labor $15,000 Indirect Labor $9,000 Insurance on Plant $13,000 Depreciation - plant building and equipment $4,000 Repairs & Maintenance - plant $77,000 Marketing Expenses $29,000 General & Admin. Expenses

Answer 1

Schedule of Cost of Goods Manufactured
Raw materials inventory, beginning	25,000
Purchases of raw materials	78,000
Total raw materials available	103,000
Raw materials inventory , ending	-28,000
Direct materials used	75,000
Direct labor	82,000
Manufacturing overheads:
Indirect labor	15,000
Insurance on plant	9,000
Depreciation - plant building and equipment	13,000
Repairs and maintenance- plant	4,000
Total Manufacturing Cost	$198,000
Work in process inventory beginnig	50,000
Work in process inventory ending	-35,000
Cost of goods manufactured	$213,000

Schedule of Cost of Goods Sold
Finished goods inventory, beginning	18,000
Cost of goods manufactured	213,000
Cost of goods available for sale	231,000
Finished goods inventory, ending	-25,000
Cost of goods sold	$206,000

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