Question

The following balances are from the accounts of Tappan Parts:

	January 1 (Beginning)			December 31 (Ending)
Direct materials inventory	$	22,400		$	25,400
Work-in-process inventory		32,800			28,800
Finished goods inventory		5,400			6,700

Direct materials used during the year amount to $45,900 and the cost of goods sold for the year was $53,400.

Required:

Prepare a cost of goods sold statement.

TAPPAN PARTS
Cost of Goods Sold Statement
For the Year Ended December 31
Manufacturing costs:
Direct materials:
Materials available
Direct materials used
Total manufacturing costs
Total costs of work-in-process
Cost of goods manufactured
Finished goods available for sale
Cost of goods sold

Answer 1

Correct Answer:

TAPPAN PARTS
Cost of Goods sold Statement
For the year ended December 31
Beginning Work in Process inventory			$        32,800.00
Manufacturing costs
Direct materials
Beginning Inventory	$        22,400.00
Purchases	$        48,900.00
Material Available	$        71,300.00
Less: Ending Inventory	$        25,400.00
Direct Material Used		$        45,900.00
Other Manufacturing Costs		$          4,800.00
Total Manufacturing Costs			$        50,700.00
Total Cost of Work in Process			$        83,500.00
Less: Ending Work in Process			$        28,800.00
Cost of Goods manufactured			$        54,700.00
Beginning Finished Goods Inventory			$          5,400.00
Finished Goods available for sale			$        60,100.00
Ending Finished Goods Inventory			$          6,700.00
Cost of Goods sold			$        53,400.00

                                                                                                                                 

Working:

Purchase of Raw Material:

Material Used	$                45,900.00
Add: Ending raw material	$                25,400.00
Less: Beginning raw material	$              (22,400.00)
Purchases of raw material	$                48,900.00

Balancing figure (other manufacturing cost)

Material Cost	$                45,900.00
Add: Beginning WIP	$                32,800.00
Less: Ending WIP	$              (28,800.00)
Subtotal	$                49,900.00
Add: Beginning Finished Goods Inventory	$                  5,400.00
Less: Ending Finished Goods Inventory	$                (6,700.00)
Subtotal	$                48,600.00
Actual Cost of Goods sold	$                53,400.00
Balancing figure (Other manufacturing cost)	$                  4,800.00

End of answer.

Please give a thumbs-up, it will be highly appreciated.

Thanks.