Bal. 1/1 38,000 Credits ? Debits 388,000 Credits ? Debits 450,000 Bal. 12/31 55,

Question

   Bal. 1/1                   38,000

   Credits                 ?  

   Debits                388,000

  Credits                 ?   

   Debits                   450,000

   Bal. 12/31               55,000   

   Bal. 1/1                   79,000  

   Credits              780,000  

   Debits               177,000

   Bal. 1/1                 10,000  

   Overhead               420,000   

   Bal. 12/31              14,000  

   Bal. 12/31                    ?         

   Bal. 1/1                  47,000  

   Credits                    ?

   Debits                      ?   

   Debits                         ?

   Bal. 12/31             138,000  

What was the cost of raw materials put into production during the year?

How much of the factory labor cost for the year consisted of indirect labor?

What was the cost of goods manufactured for the year?

What was the cost of goods sold for the year (before considering underapplied or overapplied overhead)?

Explanation / Answer

1) Raw Material Consumed = Opening + Purchases - Closing = 38000 + 450000 - 55000 = 433000

2) Indirect raw Material = Raw material consumed - RM transferred to WIP = 433000 - 328000 = 105000

3) Indirect Labor = Labor costs - Labor transferred to WIP = 181000 - 119000 = 62000

4) Cost of goods manufactured = The cost of goods transferred from WIP to Finished Goods = 780000

5 ) Cost of Goods Sold = Opening stock of finished goods + Cost of goods manufactured + Closing stock of finished goods = 47000 + 780000 - 138000 = 689000

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