Required information
[The following information applies to the questions
displayed below.]
The following selected information was extracted from the 20x1
accounting records of Lone Oak Products:
Raw material purchases | $ | 175,000 | |
Direct labor | 254,000 | ||
Indirect labor | 109,000 | ||
Selling and administrative salaries | 133,000 | ||
Building depreciation* | 80,000 | ||
Other selling and administrative expenses | 195,000 | ||
Other factory costs | 344,000 | ||
Sales revenue ($130 per unit) | 1,495,000 | ||
*Seventy-five percent of the company's building was devoted to production activities; the remaining 25 percent was used for selling and administrative functions.
Inventory data:
January 1 | December 31 | |||||
Raw material | $ | 15,800 | $ | 18,200 | ||
Work in process | 35,700 | 62,100 | ||||
Finished goods* | 111,100 | 97,900 | ||||
*The January 1 and December 31 finished-goods inventory consisted of 1,350 units and 1,190 units, respectively.
3. Compute the company’s cost of goods sold.
I got 915,600 for Cost of goods sold please let me know if that is correct.
Solution
Cost of goods sold | $ 926,400 |
Working
Cost of Goods Manufactured and Cost of goods sold | |||
Beginning Work in process | $ 35,700 | ||
Direct materials used | |||
Raw material Inventory Beginning | $ 15,800 | ||
Raw material Purchased | $ 175,000 | ||
Raw material available for use | $ 190,800 | ||
Less: Raw material Inventory Ending | $ 18,200 | ||
Direct Material Used | $ 172,600 | ||
Direct labor | $ 254,000 | ||
Manufacturing Overheads | |||
Indirect labor | $ 109,000 | ||
Building depreciation (75% of 80000) | $ 60,000 | ||
Other factory costs | $ 344,000 | ||
Total manufacturing overhead | $ 513,000 | ||
Total manufacturing cost incurred during the year | $ 939,600 | ||
Total manufactiuring cost to account for | $ 975,300 | ||
Less: Ending WIP inventory | $ 62,100 | ||
Cost of goods manufactured | $ 913,200 | ||
Add: Beginning Finished goods inventory | $ 111,100 | ||
Goods available for sale | $ 1,024,300 | ||
Less: Ending Finished goods inventory | $ 97,900 | ||
Cost of goods sold | $ 926,400 |
Required information [The following information applies to the questions displayed below.] The following selected information was...
[The following information applies to the questions displayed below.] The following selected information was extracted from the 20x1 accounting records of Lone Oak Products: Raw material purchases $ 175,000 Direct labor 254,000 Indirect labor 109,000 Selling and administrative salaries 133,000 Building depreciation* 80,000 Other selling and administrative expenses 195,000 Other factory costs 343,000 Sales revenue ($130 per unit) 1,495,000 *Seventy-five percent of the company's building was devoted to production activities; the remaining 25 percent was used for selling and administrative...
The following selected information was extracted from the 20x1 accounting records of Lone Oak Products: Raw material purchases $ 175,000 Direct labor 255,000 Indirect labor 107,000 Selling and administrative salaries 133,000 Building depreciation* 80,000 Other selling and administrative expenses 195,000 Other factory costs 343,000 Sales revenue ($130 per unit) 1,495,000 *Seventy-five percent of the company's building was devoted to production activities; the remaining 25 percent was used for selling and administrative functions. Inventory data: January 1 December 31 Raw material...
The following selected information was extracted from the 20x1 accounting records of Lone Oak Products: Raw material purchases $ 176,000 Direct labor 256,000 Indirect labor 108,000 Selling and administrative salaries 133,000 Building depreciation* 80,000 Other selling and administrative expenses 195,000 Other factory costs 343,000 Sales revenue ($130 per unit) 1,495,000 *Seventy-five percent of the company's building was devoted to production activities; the remaining 25 percent was used for selling and administrative functions. Inventory data: January 1 December 31 Raw material...
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