Question

The following balances are from the accounts of Tappan Parts: Direct materials inventory Work-in-process inventory Finished goods inventory January 1 (Beginning) $ 21,500 32,900 5,800 December 31 (Ending) $ 25,200 28,800 7,000 Direct materials used during the year amount to $46,200 and the cost of goods sold for the year was $53,200. Required: Prepare a cost of goods sold statement. 32,900 TAPPAN PARTS Cost of Goods Sold Statement For the Year Ended December 31 Beginning work-in-process inventory Manufacturing costs: Direct materials: Beginning inventory 21,500 Purchases Materials available Less: Ending inventory Direct materials used Other manufacturing costs Total manufacturing costs Total costs of work-in-process Less: Ending work-in-process Cost of goods manufactured Beginning finished goods inventory Finished goods available for sale Less: Ending finished goods inventory Cost of goods sold

Answer 1

TAPPAN PARTS
Cost of goods sold statement
For the Year Ended December 31
Beginning work in process inventory			$                                        32,900
Manufacturing cost:
Direct materials:
Beginning inventory	$                                       21,500
Add: Purchases	$71,400-$21,500 = $49,900
Materials available	$46,200+25,200 = $71,400
Less: Ending inventory	$                                       25,200
Direct materials used		$                                     46,200
Other manufacturing costs		$50,300-$46,200 = $4,100
Total manufacturing costs			$83,200-$32,900 = $50,300
Total cost of work in process			$54,400+$28,800 = $83,200
Less: Ending work in process			$                                        28,800
Cost of goods manufactured			$60,200-$5,800 = $54,400
Beginning finished goods inventory			$                                           5,800
Finished goods available for sale			$53,200+$7,000 = $60,200
Less: Ending finished goods inventory			$                                           7,000
Cost of goods sold			$                                        53,200

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