3. Please Prepare a Statement of Cost of Goods Sold for Nike Inc. using the info
ID: 2380380 • Letter: 3
Question
3. Please Prepare a Statement of Cost of Goods Sold for Nike Inc. using the information provided below for the year Ended December 31, 2012.
Raw Materials Purchased = $205,000
Office Administrtion Salary = 62,815
Beginning Raw Materials = 30,000
Beginning Work in Process = 80,000
Beginning Finished Goods = 110,000
Ending Raw Materials = 20,000
Direct Labor Cost = 350,000
Indirect Labor Cost = 90,000
Factory Utilities = 65,000
Factory Machine Rent = 40,000
Factory Manager's Salary = 35,000
Depreciation on Factory Building = 24,000
Indirect Materials = 15,000
Factory Insurance = 14,000
Property Taxes-Factory Building = 6,000
Ending Work-In Process = 50,000
Ending Finished Goods = 120,000
Depreciation Expense- Administrative Building = 48,000
CEO Salary = 164,800
Office Supplies Expense = 4,216
Explanation / Answer
Cost of Goods Sold Statement
For the year ended Dec. 31, 2012
Raw materials:
Materials Inventory, Jan. 1, 2012: $30,000
Purchases: $205,000
Materials Available for Use: $235,000
Less: Mater. Inv. Dec. 31, 2012 $20,000
Direct Materials Consumed: $215,000
Direct Labor: $350,000
Factory Overheard:
Indirect Labor Cost 90,000
Factory Utilities 65,000
Factory Machinery Rent 40,000
Factory Managers Salary 35,000
Depreciation on Factory Building 24,000
Indirect Materials 15,000
Factory Insurance 14,000
Property Taxes-Factory Building 6,000
Total Factory Overhead: 289,000
Total manufacturing cost: 854,000
Add Beg WIP inventory: 80,000
Total cost to be accounted for: 934,000
Less: end WIP inventory: 50,000
Cost of Goods manufactured: 884,000
Add beg. Finished goods inventory: 110,000
Cost of goods available for sale: 994,000
Less: finished goods ending inventory: 120,000
Cost of goods sold: 874,000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.