Question

Problem 14-04A The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2020. Raw Materials Inventory 7/1/19 $50,400 Factory Insurance $5,500 Raw Materials Inventory 6/30/20 39,900 Factory Machinery Depreciation 18,100 Finished Goods Inventory 7/1/19 99,600 Factory Utilities 30,100 Finished Goods Inventory 6/30/20 20,600 Office Utilities Expense 8,650 Work in Process Inventory 7/1/19 27,300 Sales Revenue 562,100 Work in Process Inventory 6/30/20 20,100 Sales Discounts 5,300 Direct Labor 148,350 Plant Manager's Salary 64,900 Indirect Labor 25,660 Factory Property Taxes 9,610 Accounts Receivable 28,000 Factory Repairs 2,200 Raw Materials Purchases 98,700 Cash 38,200 Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.) CLARKSON COMPANY Cost of Goods Manufactured Schedule

Answer 1

Ans. 1	CLARKSON COMPANY
	COST   OF   GOODS   MANUFACTURED SCHEDULE
	For the Fiscal Year Ended June 30, 2020
	Particulars	Amount	Amount
	Beginning Work in process inventory		$27,300
	Direct materials :
	Beginning raw materials inventory	$50,400
	Add: Purchase of direct materials	$98,700
	Raw materials available	$149,100
	Less: Ending raw materials inventory	-$39,900
	Direct materials used (A)		$109,200
	Direct labor (B)		$148,350
	Manufacturing overhead applied:
	Indirect labor	$25,660
	Factory Insurance	$5,500
	Factory machinery depreciation	$18,100
	Factory utilities	$30,100
	Plant manager's salary	$64,900
	Factory property taxes	$9,610
	Factory repairs	$2,200
	Total manufacturing overhead ©		$156,070
	Total manufacturing costs (A+B+C)		$413,620
	Total cost of work in process		$440,920
	Less: Ending Work in process inventory		-$20,100
	Cost of goods manufactured		$420,820
Ans. 2	CLARKSON COMPANY
	Income Statement
	For Year Ended June 30, 2020
	Particulars	Amount	Amount
	Sales revenue	$562,100
	Less: Sales discounts	-$5,300
	Net sales revenue		$556,800
	Less: Cost of goods sold:
	Cost of Goods Manufactured	$420,820
	Add: Beginning finished goods inventory	$99,600
	Cost of goods available for sale	$520,420
	Less: Ending finished goods inventory	-$20,600
	Cost of goods sold		$499,820
	Gross profit		$56,980
	*Office utilities expense is used as Administrative expenses.
Ans. 3	CLARKSON COMPANY
	(Partial) Balance Sheet
	For Year Ended June 30, 2020
	Current assets:
	Cash (A)		$38,200
	Accounts receivable (B)		$28,000
	Inventories:
	Raw materials ending inventory	$39,900
	Work in process ending inventory	$20,100
	Finished goods ending inventory	$20,600
	Total inventroies ©		$80,600
	Total current assets (A+B+C)		$146,800