Question

Compute the cost of goods manufactured and cost of goods sold for Crystal Bay Company for the most recent year using the amounts described below. Assume that raw materials inventory contains only direct materials E: (Click the icon to view the data.) Start the calculation for cost of goods manufactured by calculating the direct materials used, then calculate the cost of goods manufactured. Crystal Bay Company Schedule of Cost of Goods Manufactured Add: Direct materials used Direct materials used

Answer 1

$ 50,000 Crystal Bay Company Schedule of Cost of Goods Manufactured For the Year Ended Beginning Work in Process Inventory Add: Direct Materials used Beginning Raw Material inventory $ 28,000 Purchase of direct materials $ 84,000 Direct materials available for use $112.000 Ending Raw materials inventory $ 32,000 Direct Materials used $ 80,000 Direct Labour $ 84,000 Factory overhead Indirect Labour S 18.000 Insurance on plant $ 13,500 Depreciation-plant building and equipment $ 14,000 Repairs and maintenance-plant $ 7,500 Total Factory overhead S 53,000 Total Manufacturing Costs Total Cost of Work in Process Less: Ending Work in process Inventory Cost of goods Manufactured $217,000 $ 267,000 $ 44,000 $223,000