Question

IThe following information applies to the questions displayed below,) The following data refer to Twisto Pretzel Company for the year work in-process inventory, 12/31/ Selling and administrative salaries Insurance on factory and equipment work-in-process inventory, 12/B1/xi Finished goods inventory, 12/3t/ce Cash balance, 12/31/x1 Indirect material used Depreciation on factony quipment Raw matertal inventony, 12/31/xo Property taxes on factory Finished goods inventory, 12/31/x1 Punchases of raw material in 2ax Utilitles for factory ütilities for sales and administrative offices Other, selling and administrative expenses Tndinect labor cost incunned Deprectation on factory buiiding Depnectation on cars used by sales petsoon oirect labor cost incurred 18 800 11200 ai mater i all inventory, д2/31/ bucountsnecelvable 12/31/KI Reotel fon warehouse gPace to itone rau matentel entel of space for company president's office ppated #manufacturing loverhea Ancome,tax expens

Answer 1

Solution:

Twisto Pretzel
Schedule of cost of goods sold
For the year 20X1
Particulars		Amount
Direct material consumed:
Raw material inventory, 12/31/X0	$10,100.00
Add: Purchases	$38,800.00
Less: Raw material inventory, 12/31/X1	$11,000.00
Raw material consumed	$37,900.00
Less: Indirect material	$4,900.00
Direct material used		$33,000.00
Direct labor		$79,000.00
Manufacturing overhead applied		$58,000.00
Total manufacturing cost incurred during the year		$170,000.00
Add: Beginning WIP		$8,100.00
Total cost of Work in Process		$178,100.00
Less: Ending WIP		$8,100.00
Cost of goods manufactured		$170,000.00
Add: Beginning finished goods inventory		$14,000.00
Cost of goods available for sale		$184,000.00
Less: Ending finished goods inventory		$15,300.00
Unadjusted cost of goods sold		$168,700.00
Less: Overapplied overhead		$6,600.00
Adjusted cost of goods sold		$162,100.00

Computation of Underapplied / Overapplied overhead
Particulars	Amount
Manufacturing overhead incurred:
Indirect material	$4,900.00
Depreciation on factory equipment	$2,100.00
Insurance on factory and equipment	$3,600.00
Property taxes on factory	$2,400.00
Utilities for factory	$6,000.00
Indirect labor cost	$29,000.00
Depreciation on factory building	$3,400.00
Total manufacturing overhead incurred	$51,400.00
Applied overhead	$58,000.00
Overapplied overhead	$6,600.00