Question

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mpson Company manufactures desk lamps. At the beginning of September, the following information was supplied by its accountant. Raw materials inventory Work in process inventory Finished goods inventory $18,500 12,000 10,200 During September, direct labor cost was $40.500, raw materials purchases were $80,000, and the total overhead cost was $105,750. The inventories at the end of September were: Raw materials inventory Work in process inventory Finished goods inventory $16,800 23,500 REQUIRED 1. Calculate the cost of goods manufactured for September. 2. Calculate the cost of goods sold for September.

Answer 1

Cost Of Goods Manufactured : $2,16,450.00

Cost Of Goods Sold: $2,17,550.00

THOMPSON COMPANY Cost Of Goods Manufactured Particulars Amount Amount Direct Material Used: Raw Material Inventory (Opening Balance) Add: Raw Material Purchases Less: Raw Material Inventory (Closing Balance 18,500.00 80,000.00 16,800.00 Raw Material Used 81,700.00 Less: Indirect Material Used Direct Material Used Add: Direct Labour 81,700.00 40,500.00 Add: Total Manufacturing Overheads Total Manufacturing Cost Add: Opening Work in Progress Less: Closing Work IN Progress Cost Of Goods Manufactured 1,05,750.00 2,27,950.00 12,000.00 23,500.00 2,16,450.00 Cost Of Goods Sold Particulars Amount Amount Opening Finished Goods Add: Cost of Goods Manufactured 10,200.00 2,16,450.00 Less: Closing Finished Goods Cost Of Goods Sold 9,100.00 2,17,550.00