Question

Sunland Company's accounting records reflect the following inventories: Dec. 31, 2020 Dec. 31, 2019 $310000 $260000 Raw materials inventory Work in process inventory Finished goods inventory 300000 160000 190000 150000 During 2020, $620000 of raw materials were purchased, direct labor costs amounted to $567800, and manufacturing overhead incurred was $480000. If Sunland Company's cost of goods manufactured for 2020 amounted to $1477800, its cost of goods sold for the year is $1587800. $1517800. $1337800. $1437800.

Answer 1

Cost of Goods sold for the year is = $1,437,800 Working Notes: Sunland Company Cost of Goods sold Statement For the Year Ended December 31, 2020 Raw Materials Inventory December 31,2019 $ 260,000 Add: Raw Materials Purchased $ 620.000 Raw materials available for use $ 880,000 Less: Raw materials Inventory December 31, 2020 $ 310,000 Raw Materials used $570,000 Direct Labor Cost $ 567,800 Manufacturing Overhead $ 480,000 Total manufacturing cost $1,617,800 Add: Work in Process inventory December 31, 2019 | $ 160,000 Manufacturing cost account for $1,777,800 Less: Work in Process inventory December 31,2020 $ 300,000 Cost of Goods Manufactured $1,477,800 Add: Finished Goods Inventory December 31, 2019 $ 150,000 Cost of Goods Available for Sale $1,627,800 Less: Finished Goods Inventory December 31, 2020 $ 190,000 Cost of Goods Sold $ 1,437,800