Question

- - - - Eboyta Corporation reported the following results for the current year: Revenue Beginning inventory, Direct Materials Ending inventory, Direct Materials Purchases - Direct Materials Direct Labor Manufacturing Equipment Depreciation Plant Utilities Plant Equipment Maintenance Marketing Customer Service Beginning Work in Process Ending Work-in-Process Beginning Finished Goods Ending Finished Goods $950,000 15,000 20,000 325,000 100,000 80.000 15,000 35,000 84,000 22,000 25,000 30,000 70,000 55,000 Based on the data in the table above, Cost of Goods Sold equals: Multiple Choice < Prev 17 of 31 !! to search

Answer 1

Solution

Eboyta Corporation

Determination of cost of goods sold:

Schedule of cost of goods sold:
Beg. Inventory	$15,000
add: purchases	$325,000
raw materials available for production	$340,000
Less: ending inventory	$20,000
Direct materials used in production		$320,000
Direct labor		$100,000
Manufacturing overhead:
Manufacturing equipment depreciation	$80,000
plant utilities	$15,000
lant equipment maintenance	$35,000
manufacturing overhead		$130,000
Subtotal		$550,000
Add: beginning work in process		$25,000
Subtotal		$575,000
Less: ending work in process		$30,000
Cost of goods manufactured		$545,000
Add: beginning finished goods		$70,000
Cost of goods available for sale		$615,000
Less: ending finished goods		$55,000
Cost of goods sold		$560,000