Question

The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2020. Raw Materials Inventory 7/1/19 Raw Materials Inventory 6/30/20 Finished Goods Inventory 7/1/19 Finished Goods Inventory 6/30/20 Work in Process Inventory 7/1/19 Work in Process Inventory 6/30/20 Direct Labor Indirect Labor Accounts Receivable $48,900 46,900 97,700 21,600 25,200 23,700 142,050 25,360 35,500 Factory Insurance Factory Machinery Depreciation Factory Utilities Office Utilities Expense Sales Revenue Sales Discounts Plant Manager's Salary Factory Property Taxes Factory Repairs Raw Materials Purchases Cash $5,100 18,000 30,000 9,350 558,900 5,000 65.200 9.710 2,200 96,700 40.700 Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.) CLARKSON COMPANY Cost of Goods Manufactured Schedule

Answer 1

CLARKSON COMPANY

Cost of goods manufactured Schedule

For the year ended June 30, 2017

Particulars	$	$	$
Working in process Inventory 7/1/19			25,200
Direct Materials:
Raw materials Inventory 7/1/19	48,900
Raw materials purchases	96,700
Total Raw Materials available for use	145,600
Less: Raw materials Inventory 6/30/20	46,900
Direct Materials used		98,700
Direct labor		142,050
Manufacturing Overhead:
Indirect Labor	25,360
Factory Insurance	5,100
Factory Machine Depreciation	18,000
Factory Utilities	30,000
Plant Manager's Salary	65,200
Factory Property taxes	9,710
Factory Repairs	2,200
Total Manufacturing Overhead		155,570
Total Cost of work in process			421,520
Less: Work in process Inventory 6/30/20			23,700
Cost of goods manufactured			397,820

CLARKSON COMPANY

(Partial) Cost of goods sold

For the year ended June 30, 2017

Particulars	$	$
Sales Revenue	558,900
Less: Sales Discount	5,000
Net Sales		553,900
Less: Cost of goods sold
Finished goods inventory July 1, 2019	97,700
Cost of goods manufactured	397,820
Cost of goods available for sale	495,520
Less: Finished goods Inventory June 30, 2020	21,600
Cost of goods sold		473,920
Gross Profit		79,980

CLARKSON COMPANY

(Partial) Balance Sheet

As on June 30, 2017

Particulars	$	$
Current Assets:
Cash		40,700
Accounts Receivable		35,500
Inventories:
Finished Goods	21,600
Work in Process	23,700
Raw Materials	46,900
		92,200
Total Current Assets		168,400

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