Question

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.Required information (The following information applies to the questions displayed below.) The following selected information

I got 915,600 for Cost of goods sold please let me know if that is correct.

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Answer #1

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
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