sales-643000 direct labor costs-90000 raw material purchases-132000 selling expe
ID: 2345388 • Letter: S
Question
sales-643000direct labor costs-90000
raw material purchases-132000
selling expenses-100000
administrative expenses-43000
manufacturing overhead applied to work in process-210000
actual manufacturing overhead costs-220000
Inventories: Beginning of the year: end of year:
raw materials 8000 10000
work in process 5000 20000
finished goods 70000 25000
1. prepare a schedule of costs of goods manufactured. assume all raq materials used in production were direct materials.
2. prepare a schedule of cost of goods sold
3. prepare an income statement.
Explanation / Answer
1. cost of goods manufactured: Direct materials Beginning inventory 8000 purchases 132000 available for use 140000 ending 10000 direct materials used 130000 Direct manufacturing labor 90000 manufacturing overhead 220000 manufaturing costs incurred 440000 plus beginning wip 5000 costs to account for 445000 less ending wip 20000 cost of goods mnaufactured 425000 2. cost of goods sold beginning finished inventory 70000 plus cost of goods manufactured 425000 cost of goods available fo sale 495000 less ending finished goods inventory 25000 cost of goods sold 470000 3. income statement revenues 643000 les costof goods sold 470000 gross margin 173000 selling and admin 143000 operating income 30000
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