Question

Manufacturing costs; cost of goods manufactured; cost of goods sold The December 31,19B trial balance of the balk well company showed Sales……………………………………. $4,000,500 sales returns and allowances…………$ 25,200 Purchases (net)……………………..2,400,500 Transportation in………………………….. 32,00 Direct labor…………………………..3,204,000 Factory overhead………………………….. 1,885,600 Sales salaries………………………….200, 000 Advertising expense……………………… 155,000 Delivery expense………………………….. 65,000 Inventories: December 31,19B December 31,19A Finished goods……………….... $467,400 $620,000 Work in process……………….. 136,800 129,800 Materials…………………………. 196,000 176,000 Required: 1) Total manufacturing cost 2) Cost of goods manufactured 3) cost of goods sold

Answer 1

BALK WELL COMPANY

Cost of goods sold statement

For the year ended December 31,19B

Particulars	Amount in $
Direct materials used :
Beginning materials	176,000
Purchases	2,400,500
Freight in	3200
Cost of materials available for use	2,579,700
Ending materials	(196,000)
Direct materials used	2,383,700
Direct labor cost	3,204,000
Factory overhead	1,885,600
Total manufacturing cost	7,443,300
Add. Beginning WIP	129,800
Total work put into process	7,573,100
Less Ending WIP	(136,800)
Cost of goods manufactured	7,436,300
Add. Beginning finished goods	620,000
Cost of goods available for sale	8,056,300
Less. Ending finished goods	(467,400)
Cost of goods sold	7,588,900

1) Total manufacturing cost=7,443,300

2) Cost of goods manufactured=7,436,300

3) Cost of goods sold=7,588,900 ​​​​​​

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