the data The following The Falcon Company does not moinain backup documenns for
ID: 2437540 • Letter: T
Question
the data The following The Falcon Company does not moinain backup documenns for its computer iles, In June, some of the current data were lost, and you have been asked to help reconstruct beginning belances on June 1 are known work-in-Process Invemory Finished Goods Invemory Menufactuning Ovahead Control Accounts Paysble 12,600 5300 12.600 22.500 6,600 The production superintendents job eost sheets indicated thetls of $3.200 for the yos n process on June s were icldedi the 30 Work-in Process Inventory Also, 360 drect labor hours hed been paid ar $6 00 per hour The Accoums Paysble account is only dinct material purchases The ndcmed payme of 46.000 were made to spplers ne balance n she Accounts Payable on June 30 was 58,600 An analyss of canceled checis Payroll records ndcm, ter SMO direct labor hours were recorded for Me h cturing oveed cost O 590000 O 5105 200 O s9200Explanation / Answer
We are required to compute the Cost of Manufactured Goods as per the given question , the Cost of Goods sold has been given in the question = $90000 , Opening Finished goods = $12600 , Closing Finished Goods = 17200.
Since Cost of Manufactured Goods means the manufacturing costs incurred by a business concerns on the products/goods for completing its manufacturing process in a given Accounting period. Now that we are given Cost of Goods sold which means only the manufacturing cost of Goods sold in an accounting year has been included in it, not the cost of Closing Finished goods & hence this cost needs to be included in Cost of goods sold to arrive at the Cost of Manufactured goods. Simultaneously the Cost of Goods sold includes in it the Cost of Opening Finished goods which were not manufactured in this Accounting period. Hence we need to exclude that in order to arrive at Cost of manufactured Goods.
Computation of Cost of Manufactured Goods :
a. Cost of goods sold : $ 90000
b. Add: Cost of Closing Finished Goods : $17200
c. Less: Cost of Opening Finished Goods : $12600
d. Cost of Manufactured Goods (a+b-c) = $94600
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