Question

Question 2 (of 2 5.00 points The following balances are trom the accounts of Crabtree Machining Company Direct materials inventory Work in-process inventory Finished goods inventory $ 99,800 111,200 107,600 44,800 108,500 44,200 Direct materials purchased during the year amount to $517,600, and the cost of goods sold for the year was $1,870,000. Required: Prepare a cost of goods sold statement Cost of Goods Sold Statement r the Year work-in-process inventory 108,500 Manufacturing costs Direct materials S 99 Beginning Inventory Purchases 517,600 617,400 111,200 Materials available Direct materials used $506 200 Other manufacturing costs Total manufacturing costs 506.200 614,700 107,600 $ 507,100 44,200 551,300 otal costs of work-in-process Less Ending work-in-process Cost of goods manufactured Finished goods available for sale ess Ending inished goods inventory Cost of goods sold 44 8 5 506 500

Answer 1

CRABTREE MACHINING COMPANY Cost of Goods Sold Statement For the Year Ended December 31 Beginning work-in-process inventory Manufacturing costs Direct materials: Beginning inventory Purchases Materials available Less: Ending inventory Direct materials used Other manufacturing costs Total manufacturing costs Total cost of work-in-process Less: Ending work-in-process Cost of goods manufactured Beginning finished goods inventorv Finished goods available for sale Less: Ending finished goods inventory Cost of goods sold 108500 99800 517600 617400 111200 506200 1363500 1869700 1978200 107600 1870600 44200 1914800 44800 1870000

Cost of goods sold = Cost of goods manufactured + Beginning finished goods inventory - Ending finished goods inventory
$1,870,000 = Cost of goods manufactured + $44,200 - $44,800
Cost of goods manufactured = $1,870,600

Cost of goods manufactured = Total cost of work-in-process - Ending work-in-process inventory
$1,870,600 = Total cost of work-in-process - $107,600
Total cost of work-in-process = $1,978,200

Total cost of work-in-process = Total manufacturing costs + Beginning work-in-process inventory
$1,978,200 = Total manufacturing costs + $108,500
Total manufacturing costs = $1,869,700

Total manufacturing costs = Direct materials used + Other manufacturing costs
$1,869,700 = $506,200 + Other manufacturing costs
Other manufacturing costs = $1,363,500