Question

Compute the cost of goods manufactured and cost of goods sold for Crystal Bay Company for the most recent year using the amounts described below. Assume that raw materials inventory contains only direct materials. (Click the icon to view the data.) Start the calculation for cost of goods manufactured by calculating the direct materials used, then calculate the cost of goods manufactured. Crystal Bay Company Schedule of Cost of Goods Manufactured i Data Table 27000 Beginning raw materials inventory Add: Direct materials used Beginning of Year Raw materials inventory ........ $ 27.000 Work in process inventory ....... 57,000 Finished goods Inventory ....... 20.000 Purchases of direct materials .... End End of Year of Year $ 37,000 Insurance on plant................... $ 13,500 43,000 Depreciation-plant building 3 1,000 and equipment 15,000 84,000 Repairs and maintenance-plant........ 6,000 84.000 Marketing expenses ............... 83,000 15,000 General and administrative expenses ... 33,000 Direct materials used Direct labour ............. Manufacturing overhead: Indirect labour .............. Print Done Total manufacturing costs incurred during the year Total manufacturing costs to account for

Answer 1

57000 Crystal Bay Company Schedule of cost of goods maufacturing Beginning Work in process Inventory Add: Direct materials used Beginning Raw materials 27000 Add: Raw material Purchased 84000 Cost of material available for use 111000 Less: Ending raw materials 37000 Direct material used Direct labor cost Manufactured Overhead: Indirect labour 15000 Insurance on plant 13500 Depreciation - plant building and equipment 15000 Repairs and maintenance plant 6000| Total manufacturing cost incurred during the year Total manufacturing cost to account for Less: Ending Work in process Inventory Cost of goods manufactued 74000 84000 49500 207500 264500 43000 221500

Crystal Bay Company Schedule of cost of goods sold Beginning Finished goods Add: Cost of goods manufactured Cost of goods available for sale Less: Ending Finished goods Cost of goods sold 20000 221500 241500 31000 210500