Group Quiz Prepare complete Schedules of Cost of goods manufactured and Cost of

Question

Group Quiz Prepare complete Schedules of Cost of goods manufactured and Cost of goods sold for the year ended December 31, 2017 for Mcgrove Corp. based on the following information: Materials inventory decreased $5,000 during 2017 Materials inventory on Dec. 31, 2017, was 50% of materials inventory on Jan. 1, 2017. Beginning work-in-process inventory was $100,000. Ending finished goods inventory was $75,000. Purchases of direct materials were $110,000. . Direct materials used were 2 times the cost of direct labor. Manufacturing overhead was 80% of thecost of direct labor. Total manufacturing costs incurred were 80% of cost of goods and were $30,000 less than cost of goods sold.

Explanation / Answer

Solution:

Schedule of Cost of Goods Manufactured Particulars Details Amount Manufacturing Costs: Purchases of raw material $110,000.00 Add: Decrease in Material Inventory $5,000.00 Raw material consumption $115,000.00 Direct labor ($115000/2) $57,500.00 Manufacturing overhead ($57500*80%) $46,000.00 Total Manufacturing Costs $218,500.00 WIP Inventory Beginning $100,000.00 WIP Inventory Ending (Balancing figure) -$45,375.00 Cost of goods manufactured ($218500/80%) $273,125.00

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

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