Beginning End of End of of Year Year Year Raw materials inventory. . . . . . . .
ID: 2410696 • Letter: B
Question
Beginning
End of
End of
of Year
Year
Year
Raw materials inventory. . . . . . . .
$23,000
$26,000
Insurance on plant. . . . . . . . . . . . . . . . . . . . . . . .
$11,000
Work in process inventory. . . . . .
$38,000
$34,000
Depreciation-plant building and equipment. . . .
$12,700
Finished goods inventory. . . . . . .
$20,000
$22,000
Repairs and maintenance-plant. . . . . . . . . . . . .
$4,300
Purchases of direct materials. . . .
$73,000
Marketing expenses. . . . . . . . . . . . . . . . . . . .
$77,000
Direct labor. . . . . . . . . . . . . . . .
$89,000
General and administrative expenses. . . . . . . . .
$28,500
Indirect labor. . . . . . . . . . . . . . . . .
$41,000
Clear Bay Company
Calculation of Cost of Goods Sold
For Current Year
Plus:
Less:
Cost of goods sold
.
Beginning
End of
End of
of Year
Year
Year
Raw materials inventory. . . . . . . .
$23,000
$26,000
Insurance on plant. . . . . . . . . . . . . . . . . . . . . . . .
$11,000
Work in process inventory. . . . . .
$38,000
$34,000
Depreciation-plant building and equipment. . . .
$12,700
Finished goods inventory. . . . . . .
$20,000
$22,000
Repairs and maintenance-plant. . . . . . . . . . . . .
$4,300
Purchases of direct materials. . . .
$73,000
Marketing expenses. . . . . . . . . . . . . . . . . . . .
$77,000
Direct labor. . . . . . . . . . . . . . . .
$89,000
General and administrative expenses. . . . . . . . .
$28,500
Indirect labor. . . . . . . . . . . . . . . . .
$41,000
Explanation / Answer
Solution:
Computation of Cost of Goods Sold Particulars Details Amount Raw Material inventory - beginning $23,000.00 Purchases of raw material $73,000.00 Ending inventory of raw material $26,000.00 Raw material consumption $70,000.00 Direct labor $89,000.00 Manufacturing overhead: Indirect labor $41,000.00 Insurance on plant $11,000.00 Depreciation - Plant building and equipment $12,700.00 Repairs and maintenance Plant $4,300.00 Total Manufacturing overhead $69,000.00 WIP Inventory Beginning $38,000.00 WIP Inventory Ending -$34,000.00 Cost of goods manufactured $232,000.00 Opening inventory of finished goods $20,000.00 Ending inventory of finished goods -$22,000.00 Cost of Goods Sold $230,000.00Related Questions
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