Question

File HOITE lisert DESIGN Layout Rererences Mallines Review View E W IDEO Worloge The following data was taken from the general ledger and other records of Martinez Manufacturing Co. at July 31, the end of the first month of operations in the current fiscal year: $50,000 15,000 20,000 28,000 21,000 12,500 Sales Materials inventory (July 1) Work in process inventory (July 1) Finished goods inventory (July 1) Materials purchased Direct labor cost Factory overhead (including $5,000 of indirect materials used and $2,500 of indirect labor cost) Selling and administrative expense Inventories at July 31: Materials Work in process Finished goods 11,500 8,000 16,000 18,000 30,000 Prepare a statement of cost of goods manufactured. Determine the cost of goods sold for the month. 1 of 3 486 words O Type here to search

Answer 1

Answer-1)

a)

Statement of cost of goods manufactured
Direct Materials
Inventory, July 1	15,000
Purchases	21,000
Total cost of available materials	36,000
Minus: Inventory, July 31	-16,000
Cost of materials used	20,000
Less indirect materials used	-5,000
Cost of direct materials used in production		15,000
Direct labor		12,500
Factory overhead:
Indirect materials	5,000
Indirect labor	2,500
Other	4,000
Total factory overhead		11,500
Total manufacturing cost		39,000
Plus: Work in process inventory, July 1		20,000
Total		59,000
Minus: Work in process inventory, July 31		-18,000
Cost of goods manufactured during the month		41,000

　

b)

Finished goods inventory, July 1	28,000
Plus: Cost of goods manufactured during July	41,000
Goods available for sale	69,000
Minus: Finished goods inventory, July 31	30,000
Cost of goods sold	39,000

　

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