Question

- Question 3: Excellence Ltd. has the below inventory balances and other information at the end of Dec 2019. Balances Beginning Ending Direct Material Working in Process Inventory Finished Goods Inventory 17,750.00 2,850.00 4,200.00 $ 8,000.00 $ 3,500.00 $ 3,800.00 $ $ Other information Purchase of Direct Material Factory Supervisor Salaries Sales Salaries and Commissions Delivery Cost Sales Revenue Factory Utility Costs Factory Rent Direct Labor 60,000.00 $ 5,750.00 $ 7,250.00 $ 1.400.00 $ 115,000.00 $ 1,200.00 $ 17.750.00 $ 28,000.00

Answer 1

Excellence Ltd.
Statement of Cost of goods manufactured
For the year ended Dec 2019
Inventory:
Beginning balance of Direct material	$17750
Add: Direct material purchase	$60000
Less: Ending balance of Direct material	($8000)
Cost of Direct Material Used in Production		$69750
Direct Labor:
Direct Labor cost		$28000
Factory Overhead:
Factory Utility cost	$1200
Factory Rent	$17750
Factory supervisor salaries	$5750
Total Factory overhead cost		$24700
Total Manufacturing Cost Incurred		$122450
Add: Beginning Work in process inventory		$2850
Total work in progress		$125300
Less: Ending Work in Process Inventory		$3500
Cost of goods manufactured		$121800