cloudy comfort company accounting records reflect the following inventories: Dec

ID: 2454207 • Letter: C

Question

cloudy comfort company accounting records reflect the following inventories:

Dec, 31,2012 Dec,31,2011

raw materials inventory 310,000 260,000

work in process 300,000 160,000

finished good inventory 190,000 150,000

During 2012, $400,000 of raw materials were purchased, direct labor cost amounted to 500,000, and manufacturing overhead incurred was 480,000.

If Cloudy Comfort Company's cost of goods manyfactured for 2012 amounted to $1,190,000, its cost of goods sold for the year is?

A) 1,050,000 B)1,150,000 C)1,230,000 D)1,300,000

please provide steps

Solution:

Year 2012 December -31:

Caluculation of Cost of Goods Sold:

Begining Inventory 3,10,000

Add: Purchase of Inventory 4,00,000

Add: Manufactured Oner h 4,80,000

Cost of Goods Mfg = 11,90,000

Less: Ending Inventory 1,90,000

Cost of Goods Sold = 10,00,000

(B). Year 2011 Decmber -31:

Cost of Goods Sold:

Bweginimg Inventory 2,60,000

Add: Purchase of Onventory 0

Add: Manufactured Oner h 0

= 2,60,000

Less: Ending Invenntory 1,60,000

Cost of Goods Sold 1,00,000

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.