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) $ 99,500 108,700 45,800 December 31 (Ending) $ 111,200 106,200 43,400 Direct materials purchased during the year amount to $513,200, and the cost of goods sold for the year was $1,865,000 Required: Prepare a cost of goods sold statement CRABTREE MACHINING COMPANY Cost of Goods Sold Statement For the Year Ended December 31 Manufacturing costs Direct materials Materials available $ 0 Direct materials used $ Total manufacturing costs Total costs of work-in-process 0 $ 0 Cost of goods manufactured $ 0

please bold numbers to make answers clear. thank u

Answer 1

1 A cost of goods sold statement shows the cost incurred for manufacturing of products which are sold. It shows the direct materials, labor and other manufacturing overheads.

Crabtree Machining Company Cost of Goods Sold Statement For the Year Ended December 31 Beginning Work in Process Inventory $108,700 Manufacturing Costs: Direct Materials used: Beginning direct materials inventory $99,500 Add: Purchases $513,200 Cost of direct materials available $612,700 Less: Ending Direct materials inventory $111,200 Cost of direct materials used $501,500 Other Manufacturing Costs $1,358,600 Total manufacturing costs $1,860,100 Total cost of work in Process $1,968,800 Less: ending work in Process $106,200 Cost of goods manufactured $1,862,600 Add: Beginning finished goods inventory $45,800 Finished goods available for sale $1,908,400 Less: ending finished goods inventory $43,400 Cost of goods sold $1,865,000

The missing figures are calculated as follows:

Finished goods available for sale = Cost of goods sold + Ending finished goods inventory = $1,865,000 + $43,400 = $1,908,400

Cost of goods manufactured = Finished goods available for sale - Beginning finished goods inventory = $1,908,400 - $45,800 = $1,862,600

Total cost of work in Process = Cost of goods manufactured + Ending work in Process = $1,862,600 + $106,200 = $1,968,800

Total manufacturing costs = Total cost of work in Process - Beginning work in process = $1,968,800 - $108,700 = $1860,100

Other manufacturing costs = Total manufacturing costs - Direct materials used = $1,860,100 - $501500 = $1,358,600

Cost of direct materials available = Beginning direct materials inventory + Purchases = $99,500 + $513,200 = $612,700

Cost of direct materials used = Cost of direct materials available - Ending Direct materials inventory
= $612,700 - $111,200 = $501,500

Other Manufacturing Costs = Total manufacturing costs - Cost of direct materials used = $1860,100 - $501,500 = 1,358,600