Question

The following balances are from the accounts of Crabtree Machining Company Direct materials inventory Work-in-process inventory Finished goods inventory January 1 (Beginning) $ 98,600 109,300 42,300 December 31 (Ending) $ 109,500 107,400 45,100 Direct materials purchased during the year amount to $514,200, and the cost of goods sold for the year was $1,865,000 Required: Prepare a cost of goods sold statement. $ 109,300 CRABTREE MACHINING COMPANY Cost of Goods Sold Statement For the Year Ended December 31 Beginning work-in-process inventory Manufacturing costs Direct materials: Beginning inventory 98.600 Purchases 514 200

Answer 1

Cost of Good Sold = Finished Goods Available for Sale - Ending Finished Good Finished Goods Available for Sale = Cost of Good Sold + Ending Finished Good Finished Goods Available for Sale = $1865000+$45100 = $1910100 Cost of Goods Manufactured = Finished Goods Available for Sale - Beginning Finished Good Cost of Goods Manufactured = $1910100-$42300 = $1867800 Cost of Goods Manufactured = Beg. Work in progress + Direct Material used + Other Manufacturing cost-End. Work in progress Other Manufacturing cost = Cost of Goods Manufactured - Beg. Work in progress - Direct Material used +End. Work in progress Other Manufacturing cost = $1867800-$109300-$503000+$107400=$1362900 Crabtree Machining Company Cost of Good Sold Statement For the year ended December 31 Beginning Work-in-Progress $1,09,300 Manufactring Cost Direct Material Beginning Inventory $98,600 Purchases $5,14,200 Materials Available $6,12,800 Less: Ending Inventory $1,09,800 Direct Material Used $5,03,000 Other Manufacturing Cost $13,62,900 Total Manufacturing Cost $18,65,900 Total cost of Work-in-Progress $19,75,200 Less: Ending Work-in-Progress $1,07,400 Cost of Good Manufactured $18,67,800 Beginning finished goods inventory $42,300 Finished Goods available for sale $19,10,100 Less: Endning Finished goods inventory $45,100 Cost of Good Sold $18,65,000