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GIVEN: Direct materials inventory December 1, 2010 = $10,000 December 31,2010 =

ID: 2443973 • Letter: G

Question

GIVEN:

Direct materials inventory          

December 1, 2010 = $10,000        

December 31,2010 = $ 8,600

 

Work-in-process                      

December 1, 2010 = $13,000         

December 31, 2010 = $10,200

 

Finished goods                        

December 1, 2010 = $7,900           

December 31,2010 = $11,800

 

Purchases of direct materials                                                    

December 31,2010 = $29,000

 

Direct labor                                                                                   

December 31,2010 = $65,000

 

Utilities allocated to production                                                    

December 31,2010 = $3,000

 

Indirect materials                                                                      

December 31,2010 = $25,000

 

Indirect labor                                                                          

December 31,2010 = $20,000

 

Depreciation of equipment used in production                             

December 31,2010 = $9,000

 

Rent allocated to production                                                            

December 31,2010 = $9,900

 

Other production overhead                                                         

December 31,2010 = $13,100

 

FIND:
Prepare the Cost of Goods Manufactured Schedule and cost of goods sold for December 31, 2010.

Explanation / Answer

Statement of Cost of Goods Manufactured Direct materials Raw materials inventory,Dec 1 $10,000 Add:Purchase of raw materials 29,000 Raw materials available for use 39,000 Deduct:Raw materials ,Dec 31 8,600 Raw materials used in production     $30,400 Direct labor 65,000 Utilities allocated to production 3,000 Depreciation of equipment used in production 9,000 Rent allocated to production 9,900 Other production overhead 13,100 Total manufacturing cost $130,400 Add:Work in progress ,Dec 1 13,000 143,400 Less:Work in progress, Dec 31 10,200 Cost of goods manufactured 133,200 Statement of cost og goods sold Finished goods inventory, Dec 1 $7,900 Add:Cost of goods manufactured 133,200 Goods available for sale 141,100 Deduct: Finished goods, Dec 31 11,800 Cost of goods sold 129,300