Question

Data for the next 3 questions: Shaw Manufacturing, a small manufacturer, has submitted the items below concerning 2018 operations in random order. Prepare a statement of Cost of Goods Manufacture and Sold, then answer the following questions: Raw materials inventory, beginning Raw materials inventory, ending Work in process inventory, beginning Work in process inventory, ending Finished goods inventory beginning Finished goods inventory ending Sales Revenues Direct labor cost Purchases of raw materials Indirect labor cost Administrative salaries Sales salaries Depreciation factory equipment Travel and entertainment cost by sales people Insurance on factory Advertising expense Repairs and maintenance of factory Depreciation-factory building Taxes on factory Advertising cost in newspaper Depreciation-selling and admin office equipment $4,000 $5,000 $3.000 $2,000 $15.000 $30,000 $128.000 $35,040 $23,360 $18,880 $3,840 $3,200 $2,560 $2,256 $2,240 $1,920 $1,440 $1,280 $720 $384 $288 Q12. Compute cost of direct materials requested and used in factory during the year. Example of answer: 4500

Answer 1

4,000 23,360 27,360 -5,000 22,360 35,040 Statement of Cost of Goods Sold Opening Finished Goods $ 15,000 Add: Cost of Goods Manufactured $ 85,520 Cost of Goods avaliable for sale $ 1,00,520 Less: Closing Finished Goods $ -30,000 Cost of Goods Sold $ 70,520 s Statement of Cost of goods Sold Opening - Raw materials $ Add: Raw materials purchased $ Raw materials available for use $ Less: Closing- Raw materials $ Raw materials Used A Direct Labour B $ Manufacturing Overhead: Indirect Labor $ Depreciation- Factory Equipment Insurance on factory $ Depreciation- Factory building Taxes on factory Repairs & maintenance of Factory Total manfacturing Overhead C Total manfacturing Cost A+B+C) Add: Opening Work In process Inventory | $ Less:Closing Work in process Inventory | $ Cost of Goods Manufactured $ $ 18,880 2,560 2.240 1,280 720 1,440 27,120 84,520 3,000 -2,000 85,520 ** only expenses related to factory are considered in Statement of Cost of Goods Manufactured. ** remaining expenses are considered in Income Statement