nt Exercise 15-14 The following information is available for Aikman Company. Jan

Question

nt Exercise 15-14 The following information is available for Aikman Company. January 1, 2017 $26,020 16,380 28,180 2017 December 31, 2012 $33,480 19,230 25,930 Raw materials inventory Work in process inventory Finished goods inventory Materials purchased Direct labor Manufacturing overhead Sales revenue $155,040 223,300 181,490 902,520 Compute cost of goods manufactured Aikman Company Cost of Manufactured Schedule Work-in-Process Inventory, 1/1 Direct Materials Raw Materials Inventory, 1/1 26020

Explanation / Answer

Solution) Cost of goods manufactured:

Add: opening raw material $26020

Add: Purchases of raw material $155040

less: the closing stock of raw material ($33480)

Raw material consumed =$147580

Add: Direct labour $223300

prime cost =$370880

Add: manufacturing overhead $181490

Add: opening work in progress $16380

less: closing work in progress ($19230)

Cost of goods manufactured $549520 Answer

Balance sheet showing ending inventories on 31 December 2017

Liabilities Amount Assets Amount Closing raw material $33480 closing work in progress $19230 closing finishing stock $25930

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