Question

The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2020. Raw Materials Inventory 7/1/19 Raw Materials Inventory 6/30/20 Finished Goods Inventory 7/1/19 Finished Goods Inventory 6/30/20 Work in Process Inventory 7/1/19 Work in Process Inventory 6/30/20 Direct Labor Indirect Labor Accounts Receivable $56,700 40,400 96,100 20,100 28,600 24,500 142,850 25,160 34,800 Factory Insurance Factory Machinery Depreciation Factory Utilities Office Utilities Expense Sales Revenue Sales Discounts Plant Manager's Salary Factory Property Taxes Factory Repairs Raw Materials Purchases Cash $5,100 17,300 30,600 8,550 560,600 4,800 61,500 9,810 2,000 97,600 41.900

Answer 1

CLARKSON COMPANY Cost of Good manufactured For the Year Ended Une 30, 2020
Beginning Work in process Inventory - 7/1/19			$ 28,600
Direct materials:
Raw Materials inventory - 7/1/19	$ 56,700
Raw materials Purchases	$ 97,600
Cost of Raw Materials Available for use	$ 154,300
Less: Raw material Inventory - 6/30/20	($ 40,400)
Direct Materials Used		$ 113,900
Direct labor		$ 142,850
Manufacturing overhead:
Indirect labor	$ 25,160
Factory Insurance	$ 5,100
Factory Machinery Depreciation	$ 17,300
Factory Utilities	$ 30,600
Plant Manager's Salary	$ 61,500
Factory Property Taxes	$ 9,810
Factory Repairs	$ 2,000
Total Manufacturing overheads		$ 151,470
Total Manufacturing Costs			$ 408,220
Total Cost of Work in process			$ 436,820
Less: Ending Work In process Inventory - 6/30/20			($ 24,500)
Cost of Goods manufactured			$ 412,320
CLARKSON COMPANY Cost of Goods Sold
Sales Revenue	$ 560,600
Less: Sales Discounts	($ 4,800)
Net Sales		$ 555,800
Cost of Goods Sold :
Finished goods inventory, 7/1/19	$ 96,100
Add: Cost of goods Manufactured	$ 412,320
Cost of Goods available for sale	$ 508,420
Less: Finished goods inventory- 6/30/20	($ 20,100)
Cost of Goods Sold		($ 488,320)
Gross Profit		$ 67,480
CLARKSON COMPANY (Partial) Balance Sheet June 30, 2020
Current assets :
Cash		$ 41,900
Accounts receivable		$ 34,800
Inventories:
Raw materials ending inventory	$ 40,400
Work in process ending inventory	$ 24,500
Finished goods ending inventory	$ 20,100
		$ 85,000
Total Current assets		$ 161,700