Question

Alpha Company's accounting records reflect the following inventories: Dec. 31, 2020 $310,000 300,000 190,000 32) Dec. 31, 2019 $260,000 160,000 150,000 Raw materials inventory Work in process inventory Finished goods inventory During 2020, $800,000 of raw materials were purchased, direct labor costs amounted to $670,000, and manufacturing overhead incurred was $640,000. Alpha Company's total manufacturing costs incurred in 2020 amounted to a. $2,060,000. b. $2,020,000. c. $1,920,000. d. $2,110,000 Sky Company's accounting records reflect the following inventories: Dec. 31, 2020 $310,000 300,000 1,190,000 33) Dec. 31, 2019 $260,000 160,000 1,350,000 Raw materials inventory Work in process inventory Finished goods inventory During 2020, $800,000 of raw materials were purchased, direct labor costs amounted to $670,000, and manufacturing overhead incurred was $640,000. If Sky Company's cost of goods manufactured for 2020 amounted to $2,080,000, its cost of goods sold for the year is a. $2,240,000. b. $1,750,000. c. $1,850,000. d. $1,930,000.

Answer 1

Ans. 32	Option A   $2,060,000
	Particulars	Amount	Amount
	Direct materials:
	Beginning raw materials inventory	$260,000
	Add: Purchase of direct materials	$800,000
	Raw materials available	$1,060,000
	Less: Ending raw materials inventory	-$310,000
	Direct materials used		$750,000
	Direct labor		$670,000
	Manufacturing overhead		$640,000
	Total manufacturing costs		$2,060,000
Ans.33	Option A   $2,240,000
	Particulars	Amount
	Cost of Goods Manufactured	$2,080,000
	Add: Beginning finished goods inventory	$1,350,000
	Cost of goods available for sale	$3,430,000
	Less: Ending finished goods inventory	-$1,190,000
	Cost of goods sold	$2,240,000