Question

Use the following information for a manufacturer to compute cost of goods manufactured and cost of goods sold: (Click the icon to view the information.) First, compute cost of goods manufactured. Schedule of Cost of Goods Manufactured x Direct Materials Used: Data Table Balances: Beginning $ 20,000 Ending $ 30,000 42,000 37,000 Direct Materials Used Direct Materials Work-in-Process Inventory Finished Goods Inventory Other information: Purchases of direct materials 17,000 29,000 $ 78,000 Total Manufacturing Costs incurred during the Year Total Manufacturing Costs to Account For Direct labor Manufacturing overhead 87,000 45,000 Cost of Goods Manufactured Print Done

Answer 1

Solution:

Schedule of cost of goods manufactured
Particulars			Amount
Beginning Work In Process inventory			$42,000.00
Direct materials used:
Beginning direct materials inventory	$20,000.00
Add: Purchases of direct materials	$78,000.00
Direct materials available for sale	$98,000.00
Less: Ending direct materials inventory	$30,000.00
Direct materials used		$68,000.00
Direct labor		$87,000.00
Manufacturing overhead		$45,000.00
Total manufacturing costs incurred during the year			$200,000.00
Total manufacturing costs to account for			$242,000.00
Less: Ending work in process inventory			$37,000.00
Cost of goods manufactured			$205,000.00