Question

eBook Show Me How Calculator Cost of Goods Sold, Cost of Goods Manufactured Timbuk 3 Company has the following information for March: Cost of direct materials used in production Direct labor Factory overhead Work in process inventory, March 1 Work in process inventory, March 31 Finished goods inventory, March 1 Finished goods inventory, March 31 $36,00 45,000 37,000 27,000 36,250 24,000 17,000 a. For March, determine the cost of goods manufactured Using the data given, prepare a statement of Cost of Goods Manufactured. Timbuk 3 Company Statement of Cost of Goods Manufactured Total manufacturing costs incurred during March Total manufacturing costs Cost of goods manufactured b. For March, determine the cost of goods sold Using the data given, prepare a statement of Cost of Goods Sold. Timbuk 3 Company Statement of Cost of Goods Sold

Answer 1

a)Direct Material consumed : 36,000

b)Direct Labour : 45,000

c)Direct Expenses. : Nill

d)Prime cost (a+b+c)   : 81,000

e)Factory Overheads . : 37,000

f)Gross Works cost (d+e) : 118,000

g)Add : Opening WIP Inventory : 27,000

h)Less: Closing WIP Inventory . : (36,250)

i) Factory/Works cost ( f+g-h) : 108,750

j)Administrative OH relating to production: Nill

k)Quality Control cost : Nill

l)Cost of goods manufactured (i+j+k) : 108,750

m)Add: Opening finished good Inventory : 24,000

n)Less: Closing finished good Inventory. : (17,000)

o)Cost of goods sold (l+m-n) : 115,750