Question

The following balances are from the accounts of Tappan Parts: Direct materials inventory Work-in-process inventory Finished goods inventory January 1 (Beginning) $ 21,600 32,200 5,000 December 31 (Ending) $ 24,600 28,800 7,500 Direct materials used during the year amount to $46,500 and the cost of goods sold for the year was $52,600. Required: Prepare a cost of goods sold statement.

Answer 1

Solution

TAPPAN PARTS
Cost of Goods sold Statement
For the year ended December 31
Beginning Work in Process inventory			$   32,200.00
Manufacturing costs
Direct materials
Beginning Inventory	$      21,600.00
Purchases	$      49,500.00
Material Available	$      71,100.00
Less: Ending Inventory	$      24,600.00
Direct Material Used		$      46,500.00
Other Manufacturing Costs		$         5,200.00
Total Manufacturing Costs			$   51,700.00
Total Cost of Work in Process			$   83,900.00
Less: Ending Work in Process			$   28,800.00
Cost of Goods manufactured			$   55,100.00
Beginning Finished Goods Inventory			$      5,000.00
Finished Goods available for sale			$   60,100.00
Ending Finished Goods Inventory			$      7,500.00
Cost of Goods sold			$   52,600.00