Question

Ex: Determine the Ending RM Inventory, "Total Manufacturing Costs, COGM, and Ending FG Inv. $1,500,000 COGM Ending FG Inv. 74,000 39,000 198,000 67,000 195,000 101,200 26,000 63,000 Sales. Factory Maintenance..... Indirect Labour... Raw materials purchased. Factory Utilities. Raw materials used in production.... General and administrative expenses... Beginning WIP inventory.... Beginning FG inventory.... Ending WIP inventory.. Beginning RM inventory....... Selling expenses.... Direct labour...... Factory insurance..... Indirect materials... Depreciation, factory.. Cost of goods sold..... 34,000 13,000 97,600 283,000 49,000 37,600 60,000 805,000 TEdwards 2019

Answer 1

Solution:

Ending RM inventory = Beginning RM invent. + Raw mat. purchased - Raw mat. used in production

   = $13,000 + 198,000 - 195,000

   = $16,000

Schedule of Total manufacturing cost and Cost of goods manufactured Raw materials used in production Direct labour Prime cost Manufacturing overhead costs: 195,000 283,000 $ 478,000 Indirect materials 37,600 Indirect labor 39,000 Factory maintenance Factory utilities Depreciation, factory Factory Insurance Total Manufacturing Costs Add: Beginning WIP inevntory Less: Ending WIP inventory 74,000 67,000 60,000 49,000 $ 804,600 26,000 (34,000) $ 796,600 Cost of goods manufactured %24

From above schedule , Total manufacturing cost = $804,600

and COGM = $796,600

Ending FG Inv. = Beginning FG inventory+ Cost of goods manufactured - Cost of goods sold

   = $63,000 + 796,600 - 805,000

   = $54,600

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