ain.do?i true Calculator Print Item Hendrix & Franks Company had the following b

Question

ain.do?i true Calculator Print Item Hendrix & Franks Company had the following beginning and ending inventory balances for the current year ended December 31: December 31 Materials Work in Process Finished Goods January 1 $11,000 19,800 23,100 8,800 18,700 18,150 In addition, direct labor costs of $33,000 were incurred, manufacturing overhead equaled $46,200, materials purchased were $29,700, and selling and administrative costs were $24,200. Hendrix & Franks Co. sold 27,500 units of product during the year at a sales price of $5.25 per unit. What was the amount of cost of goods sold for the year? Oa. $117,150 Ob. $97,500 Oc. $128,500 Od. $102,0o0

Explanation / Answer

Solution: Answer is a. $117,150 Working Notes: Schedule of Cost of Goods Sold For Year Ended December 31 Work in process inventory, Jan 1 $19,800 a Direct Materials Raw materials inventory, Jan 1 $11,000 b Raw materials purchases $29,700 c Total Raw materials available for use $40,700 d=b+c Less: Raw materials inventory, Jan 30 $8,800 e Direct materials used $31,900 f=d-e Direct Labor $33,000 g Manufacturing overhead 46,200 h Total manufacturing costs $111,100 i=f+g+h Total cost of work in process $130,900 j=a+i Less: Work in process inventory, June 30 $18,700 k Cost of Goods Manufactured $112,200 l=j-k Finished goods Inventory , March 1 $23,100 m Cost of Finished goods available for sales $135,300 n=l+m Finished goods Inventory , March 31 $18,150 o Cost of Goods Sold $117,150 p=n-o Please feel free to ask if anything about above solution in comment section of the question.

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