Exercise 2-31 Prepare Statements for a Manufacturing Company (LO 2-2, 4) The fol
ID: 2419826 • Letter: E
Question
Exercise 2-31 Prepare Statements for a Manufacturing Company (LO 2-2, 4) The following balances are from the accounts of Hill Components:
January 1 (Beginning) Direct materials inventory $ 21,700, Work-in-process inventory 32,500, Finished goods inventory 5,300
December 31 (Ending) Direct materials inventory $ 25,200 Work-in-process inventory 29,300 Finished goods inventory 7,100
Direct materials used during the year amount to $46,000, and the cost of goods sold for the year was $52,600. Required:
(a) Find the cost of direct materials purchased during the year.
(b) Find the cost of goods manufactured during the year.
(c) Find the total manufacturing costs incurred during the year.
Explanation / Answer
NOTE ...You have to reverse work to get the answer to prepare the statement ie begine from cost of goods sold to Total manufacturing costs
(a) Find the cost of direct materials purchased during the year.
Purchase =Closing Rawmaterial+Direct material issued to production-Openning stock of Rawmaterial
(b) Find the cost of goods manufactured during the year.
Find the total manufacturing costs incurred during the year.
Statements for a Manufacturing Company Beginning work in process inventory 32500 Manufacturing costs: Direct materials: Beginning inventory 21700 Purchases 49500 Materials available 71200 Less ending inventory 25200 Direct materials used 46000 Other manufacturing costs 5200 Total manufacturing costs 51200 Total costs of work in process 83700 Less ending work in process 29300 Cost of goods manufactured 54400 Beginning finished goods inventory 5300 Finished goods available for sale 59700 Ending finished goods inventory 7100 Cost of goods sold 52600Related Questions
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