Question

The following balances are from the accounts of Crabtree Machining Company January December 31 Direct materials inventory Work-in-process inventory Finished goods inventory (Beginning) (Ending) 115,200 141,600 134,400 108,000 139,200 117,120 Direct materials purchased during the year amount to $717,600, and the cost of goods sold for the year was $2,606,880. Required: Prepare a cost of goods sold statement CRABTREE MACHINING COMPANY Cost of Goods Sold Statement For the Year Ended December 31 S 139,200 Beginning work-in-process inventory Manufacturing costs Direct materials: S 115,200 717,600 S 832,800 141,600 Beginning inventory Purchases Materials available Less: Ending inventory 691,200 Direct materials used Other manufacturing costs 691,200 $830,400 134,400 $ 696,000 117,120 $ 813,120 108,000 $705,120 Total manufacturing costs Total costs of work-in-process Less: Ending work-in-process Cost of goods manufactured Beginning finished goods inventory Finished goods available for sale ess: Ending finished goods inventory Cost of goods sold

Answer 1

CRABTREE MACHINING COMPANY
Cost of goods sold statement
For the year ended December 31
Beginning inventory work in Process			$1,39,200.00
Manufacturing Costs
Direct Material:
Beginning Direct Material inventory	$1,15,200.00
Direct material purchases	$7,17,600.00
Materials available	$8,32,800.00
Ending Direct Material inventory	$1,41,600.00
Direct Material used		$6,91,200.00
Conversion costs ($2592960-$691200)			$19,01,760.00
Total Manufacturing costs ($2732160 - $139200)			$25,92,960.00
Total cost of Work in process ($2597760+$134400)			$27,32,160.00
Less: ending inventory Work in Process			$1,34,400.00
Cost of goods manufactured ($2714880 -$117120)			$25,97,760.00
Beginning finished goods inventory			$1,17,120.00
Finished goods available for sale ($2606880+$108000)			$27,14,880.00
Ending finished goods inventory			$1,08,000.00
Cost of goods sold			$26,06,880.00