Question

Schedule of Cost of Goods Manufactured and Sold The following amounts are available for 2016 for Bishop Manufacturing Company: Administrative salaries (non-factory) $212,500 Administrative rent (non-factory) 117.500 Advertising and promotion expense 232,500 Depreciation-administrative 192.500 Depreciation-factory 237,500 Depreciation-selling 90,000 Direct labor 812.500 Factory rent 170,000 Factory supplies used 57.500 Finished goods inventory (January 1) 152.500 Finished goods inventory (December 31 157.500 Indirect material used 67.500 Indirect labor 110.000 Materials inventory (January 1) 55.000 Materials inventory (December 31) 75,000 Net delivered cost of materials purchased 525,000 Other factory overhead 137.500 Sales 2,345,000 Sales salaries expense 177,500 Work in process inventory Canuary 1) 82.500 Work in process inventory (December 31) 72.500 Using the above data, prepare a schedule of cost of goods manufactured and sold. Do not use negative signs with any of your answers. Bishop Manufacturing Company

Answer 1

Bishop Manufacturing Company Schedule of Cost of Goods Manufactured and Sold For the Year Ended December 31, 2016 Direct Material: Beginning Materials Inventory $ 55,000 Cost of Materials Purchased $5,25,000 Cost of Materials Available $5,80,000 Less : Ending material inventory $ 75,000 Total materials used $5,05,000 Less : Indirect Material Used $ 67,500 Direct Material Used $ 4,37,500 Direct Labour $ 8,12,500 Manufacturing Overhead: Indirect Material $ 67,500 indirect Labour $1,10,000 factory Supplies used $ 57,500 Factory Depreciation $2,37,500 Factory Rent $ 1,70,000 Other Factory Overheads $1,37,500 Total Manufacturing Overhead $ 7,80,000 Total Manufacturing Cost for the Year $ 20,30,000 Add: Beginning Work in process Inventory $ 82,500 Total Cost of Work in Process During the Year $ 21,12,500 Less : Ending Work in process Inventory $ 72,500 Cost of Goods Manufactured $ 20,40,000 Add: Finished Goods Inventory $ 1,52,500 Cost of Goods Available for Sale $ 21,92,500 Less : Ended Goods Inventory $ 1,57,500 Cost of Goods Sold $ 20,35,000 Note: Please comment down for any further clarifications.