Question

The following data from the just completed year are taken from the accounting records of Eccles Company: Sales Direct labour cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs $ 650,000 91,000 133,000 101,000 44,000 211,000 222,000 Inventories: Raw materials Work in process Finished goods Beginning of Year $ 8,100 5,100 70, 100 End of Year $10,100 20,100 25,100 Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. ECCLES COMPANY Schedule of Cost of Goods Manufactured Direct materials: Raw materials used in production Total manufacturing cost Cost of goods manufactured

Answer 1

8100 133000 141100 10100 ECCLES COMPANY Schedule of Cost of goods Manufactured Direct Materials: Beginning Raw material Raw material purchased Total raw materials available for use Less: Ending Raw material Raw Materials used in production Direct labor Manufacturing over head applied to work in process Total manufacturing costs Add: Beginning Work in process Total cost of work in process Less:Ending Work in process Cost of goods Manufactured 131000 91000 211000 433000 5100 438100 20100 418000

ECCLES COMPANY Schedule of Cost of goods sold Beginning finished goods Add: Cost of goods manufactured Cost of goods available for sale Less Ending finished goods Unadjusted Cost of goods sold Add: Underapplied MOH/ Less: Overapplied MOH Adjusted Cost of goods sold 70100 418000 488100 25100 463000 11000 474000 ECCLES COMPANY Income Statement Sales Less: Cost of goods sold Gross profit Selling and administrative expenses: Selling expenses Administrative expenses Net Income 650000 474000 176000 101000 44000 145000 31000