Question

Compute the cost of Goods Manufactured and Cost of Goods Sold for Strike Marine Company for the most recent year using the amounts described next. Assume that Raw Materials Inventory contains only direct materials. E: (Click the icon to view the data.) 71,000 Plus: Purchases of direct materials Materials available for use Less: Ending raw materials inventory Data Table - X Direct materials used Calculate the cost of goods manufactured. End of Beginning of Year End of Year Year Raw materials inventory . . . . . . . . $ 30,000 Insurance on plant...... 0 500 UU ILIUUICIIL U ILICIIL. . . . . . . . . . . . . . . . . . Strike Marine Company Calculation of Cost of Goods Manuf| For Current Year Beginning work in process inventory Plus: Manufacturing costs incurred Direct materials used Work in process inventory ...... $ Finished goods inventory .......$ Purchases of direct materials .... 40,000 $ 16,000 $ $ $ 35,000 Depreciation-plant building and equipment .... $ 13,100 25,000 Repairs and maintenance-plant .................$ 3,700 71,000 Marketing expenses ............................ $ 84,000 88,000 General and administrative expenses......... $ 24,500 43,000 Direct labor ................ Direct labor Indirect labor ................. A Manufacturing overhead Total manufacturing costs to account for Print Done Less: Ending work in process inventory Cost of goods manufactured

Answer 1

schedule of cost of goods manufactured
Direct material
beginning raw material inventory				27000
add: purchase of direct material				71000
raw material available				98000
less: ending raw material inventory				30000
Direct material used					68000
Direct labor					88000
Factory overhead
insurance on plant				10500
indirect labor				43000
depreciation-plant building & equipment				13100
repair & maintenance -plant				3700	70300
Total manufacturing cost					226300
beginning work in process inventory					40000
					266300
ending work in process inventory					35000
cost of goods manufactured					231300
Schedule of cost of goods sold
finished goods inventory-beginning					16000
add: cost of goods manufactured					231300
goods available for sale					247300
less: finished goods inventory at the end					25000
Cost of goods sold					222300

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