Templar Company, a manufacturing firm, has supplied the following information fr

Question

Templar Company, a manufacturing firm, has supplied the following information from its accounting records for the month of November: Factory supplies used $18,000 Depreciation on factory building 17,000 Salary of company controller 6,000 Factory janitorial costs 5,000 Marketing and promotion 4,500 Direct labor cost 22,000 Purchases of raw materials 10,000 Finished Goods Inventory, Nov. 1 2,250 Finished Goods Inventory, Nov. 30 3,750 Work in Process Inventory, Nov. 1 4,200 Work in Process Inventory, Nov. 30 2,750 Materials Inventory, Nov. 1 3,500 Materials Inventory, Nov. 30 5,100 Required: 1. Prepare a Statement of Cost of Goods Manufactured 2. Prepare a Statement of Cost of Goods Sold

Explanation / Answer

Hi,

Please find the answer as follows:

Cost of Goods Manufactured Statement:

Opening Raw Materials Inventory = 3500

Add Purchases of Raw Material = 10000

Less Closing Raw Materials Inventory = 5100

Raw Materials Used = 8400

Add Factory Supplies = 18000

Depreciation = 17000

Factory Janitorial Costs = 5000

Direct Labor = 22000

Total Manufacturing Overhead = 70400

Add Opening WIP = 4200

Less Closing WIP = 2750

Cost of Goods Manufactured = 71850

Cost of Goods Sold Statement

Cost of Goods Manufactured = 71850

Add Opening Finished Goods = 2250

Less Closing Finished Goods = 3750

Cost of Goods Sold = 70350

Thanks.

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