Question

Question 8

The following costs were incurred by a manufacturing company:

Materials used in product		$121,700
Depreciation on plant		6,500
Property taxes on plant		920
Labour costs of assembly-line workers		150,500
Factory supplies used		2,800
Advertising expense		5,200
Factory insurance		21,500
Factory supervisor’s salary		50,250

Work in process inventory was $5,100 at January 1 and $6,300 at December 31. Finished goods inventory was $30,700 at January 1 and $30,400 at December 31.

Find cost of manufactured goods and cost of goods sold

Answer 1

STATEMENT OF COST OF GOODS MANUFACTURED AND COST OF GOODS SOLD
	Amount	Amount
Current manufacturing costs:
Material used in product		$           1,21,700
Labor Cost		$           1,50,500
Manufacturing Overhead
Depreciation on plant	$                 6,500
Property tax on plant	$                     920
Factory Supplied used	$                 2,800
Factory Insurance	$               21,500
Factory Supervisor's Salary	$               50,250
		$              81,970
Total manufacturing cost		$           3,54,170
Opening Work-in-process,		$                 5,100
Total costs in process		$           3,59,270
Ending Work-in-process		$                 6,300
Cost of goods manufactured		$           3,52,970
Add: Finished Goods inventory ,		$              30,700
Total Cost available for Sold		$           3,83,670
Less: Closing Stock of Finished Goods		$              30,400
Cost of Goods Sold		$           3,53,270