Question

The following information is available for Aikman Company. January 1, 20172017December 31, 2017 Raw materials inventory Work in process inventory Finished goods inventory Materials purchased Direct labor Manufacturing overhead Sales revenue $26,010 18,560 28,900 $34,130 19,620 24,050 $155,770 224,700 182,460 905,040 Compute cost of goods manufactured.

Answer 1

Ans.1	AIKMAN COMPANY
	Cost of goods manufactured Schedule
	Particulars		Amount
	Work in process, jan.1 (beg.)		18560
	Direct materials
	Beginning Direct materials (jan.1)	26010
	Materials purchased	155770
	Materials available for use	181780
	Less: Ending direct materials (dec.31)	-34130
	Direct materials used		147650
	Direct labor		224700
	Manufacturing overhead		182460
	Total cost of WIP		573370
	Less: Ending Work in process, (dec.31)		-19620
	Cost of goods manufactured		553750
Ans.b	AIKMAN COMPANY
	Income Statement (Partial)
	Particulars		Amount
	Sales revenue		905040
	Cost of goods sold:
	Beginning finished goods inventory (jan.1)	28900
	Add: Cost of goods manufactured	553750
	Cost of goods available for sale	582650
	Less: Finished goods inventory (dec.31)	-24050
	Cost of goods sold		558600
	Gross profit (Sales - COGS)		346440
Ans.c	AIKMAN COMPANY
	(Partial) Balance Sheet
	31-Dec-17
	Current Assets:
	Inventories:
	Raw materials	34130
	Work in process	19620
	Finished goods	24050
			77800