Question

Required:

1. Prepare Twisto Pretzel Company’s schedule of cost of goods manufactured for 20x1.

Required information The following information applies to the questions displayed below.] The following data refer to Twisto Pretzel Company for the year 20x1. Work-in-process inventory, 12/31/x0 Selling and administrative salaries Insurance on factory and equipment Work-in-process inventory, 12/31/xl Finished-goods inventory, 12/31/x0 Cash balance, 12/31/x1 Indirect material used Depreciation on factory equipment Raw-material inventory, 12/31/x0 Property taxes on factory Finished-goods inventory, 12/31/x1 Purchases of raw material in 20x1 Utilities for factory Utilities for sales and administrative offices Other selling and administrative expenses Indirect-labor cost incurred Depreciation on factory building Depreciation on cars used by sales personnel Direct-labor cost incurred Raw-material inventory, 12/31/x1 Accounts receivable, 12/31/x1 Rental for warehouse space to store raw material Rental of space for company president's office Applied manufacturing overhead Sales revenue Income tax expense $ 8,000 13,800 3,600 8,300 14,000 8,000 4,600 2,100 10,100 2,400 15,300 39,000 6,000 2,300 4,000 29,000 3,600 1,200 79,000 11,000 4,000 2,900 1,600 58,000 205,800 5,100

Answer 1

SOLUTION

Schedule of cost of goods manufactured-

Particulars	Amount ($)	Amount ($)
Direct material:
Beginning raw material inventory	10,100
Add: Purchase of raw material	39,000
Raw material available for use	49,100
Deduct: Ending raw material inventory	(11,000)
Raw material used		38,100
Direct Labor		79,000
Manufacturing overhead-
Insurance on factory and Equipment	3,600
Indirect material used	4,600
Depreciation of factory equipment	2,100
Property taxes on factory	2,400
Utilities for factory	6,000
Indirect labor	29,000
Depreciation on factory building	3,600
Rental for warehouse to store raw material	2,900
Total actual manufacturing overhead	54,200
Add: Over applied overhead (58,000-54,200)	3,800
Applied manufacturing overhead		58,000
Total manufacturing costs		175,100
Add: Beginning Work in progress inventory		8,000
		183,100
Less: Ending Work in progress inventory		(8,300)
Cost of goods manufactured		174,800