Question

Compute the Cost of Goods Manutactured and Cost of Goods Sold for Strike Gold Company for the most recent year using the amounts descnbed next. Assume that Raw Materials Inventory contains only direct materials Cick the icon to view the data) Start the calculation for cost of goods manutactured by calculating the direct materials used Strike Gold Company Calculation of Direct Materials Used For Current Year Data Table Plus Beginning End of End of Year of Year Year Less Raw materials inventory 20.000 S 32,000 Insurance on plant 9,000 Drect materials used Work in process inventory Finished goods imentory Depreciation plant building and equipment $ 13.000 42.000 S 20,000 15,000 S 22,000 Repairs and maintenance plant 3,700 Purchases of direct materials 76,000 Marketing expenses S 82,000 Direct labor $ 30,500 87.000 General and administrative expenses Indirect labor 43,000 Print Done

Answer 1

Ans: Strike gold company

Calculation of direct materials used

Particulars	Amount($)
Raw material inventory beginning	20,000
Plus purchase of direct Materials	76,000
Raw material Available	96,000
Less inventory ending raw material	(32,000)
Direct Materials Used	64,000

Calculation of cost of goods manufactured

Particulars	Amount($)
Work in process inventory beginning	42,000
Plus Manufacturing costs incurred:
Direct Materials used	64,000
Direct labour	87,000
Manufacturing overhead	68,700
Total Cost of work in process	261,700
Less: work in process inventory closing	(28,000)
Cost of goods Manufactured	233,700

Manufacturing costs= 43,000+9,000+13,000+3,700

= $ 68,700

Cost of goods sold

Particulars	Amount($)
Finished goods inventory beginning	15,000
Plus: cost of goods manufactured	233,700
Cost of goods available for sale	248,700
Finished goods inventory end	(22,000)
cost of goods sold	226,700