Question

Homework: HW #1 -Chapter 2 Save Score: 0 of 1 pt E2-26A (similar to) Compute the Cost of Goods Manufactured and Cost of Goods Sold for South Marine Company for the most recent year using the amounts described next. Assume that Raw Materials Inventory contains only direct materials. 7 of 10 (0 complete) HW Score: 0%, 0 of 10 pts Question Help EEE (Click the icon to view the data.) Start the calculation for cost of goods manufactured by calculating the direct materials used. South Marine Company Calculation of Direct Materials Used For Current Year Data Table Plus: End of Year $ 8,500 Beginning End of Less of Year Year Direct materials used Raw materials inventory Work in process inventory Finished goods inventory Purchases of direct materials Direct labor Indirect labor $ 27,000 S 29,000 Insurance on plant. 42,000 S 36,000 Depreciation-plant building and equipment.$ 12,500 $ 14,000 S 26,000 Repairs and maintenance-plant S 78,000 Marketing expenses. S 80,000 General and administrative expenses S 44,000 $ 3,800 $ 82,000 $ 29,500 Print Done

Answer 1

Answer

• You have only given format of Calculation of direct material used and same is provided accordingly.
• ALSO, Cost of Goods manufactured has been calculated [though no format was provided or asked]

Calculation of Direct Material used
Raw material inventory - Beginning balance	$27,000
Plus: purchases of direct materials	$78,000
Raw material available for use	$105,000
Less: Raw material - ending balance	$29,000
Direct Material used	$76,000

Calculation of Cost of Goods manufactured
WIP Inventory - Beginning			$42,000
Direct Material used		$76,000
Direct Labor		$80,000
Manufacturing Overhead:
Indirect Labor	$44,000
Insurance on Plant	$8,500
Depreciation Plant Building Equipment	$12,500
Repairs & maintenance	$3,800
Total Overheads		$68,800
Total cost for current period			$224,800
Total cost to produce WIP			$266,800
Less: WIP Inventory - ending balance			$36,000
Cost of Goods manufactured			$230,800