compute the 20X5 cost of goods manufacterd and the cost of goods sold for strike
ID: 2389440 • Letter: C
Question
compute the 20X5 cost of goods manufacterd and the cost of goods sold for strike marine company using the following amounts:Beginning of year end of year
Materials inventory 25000 28000
work in process inventory 50000 35000
finished goods inventory 18000 25000
purchases of raw materials 78000
direct labor 82000
indirect labor 15000
insurance on plant 9000
depriecation plant building and equip. 13000
repairs and maintance- plant 4000
marketing expenses 77000
general and admin. expenses 29000
income tax expense 23000
Explanation / Answer
Cost of goods manufactured
========================
Beginning materials inventory $25,000
Add : Purchases $78,000
Total materials available $103,000
Less : Ending raw materials inventory $28,000
Total materials used $75,000
Direct labor $82,000
Manufacturing overhead
Indirect labor $15,000
Insurance on plant $9,000
Depriecation plant building and equip. $13,000
Repairs and maintenance- plant $4,000
Total manufacturing overhead $41,000
__________
Total manufacturing cost $198,000
Add : Beginning WIP inventory $50,000
$248,000
Less : Ending WIP inventory $35,000
Cost of goods manufactured $213,000
Cost of goods sold
===============
Beginning finished goods inventory $18,000
Add : Cost of goods manufactured $213,000
Total goods available for sale $231,000
Less : Ending finished goods inventory $25,000
Cost of goods sold $206,000
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