Administrative salaries (non-factory)$70,000Administrative rent (non-factory)35,

Question

Administrative salaries (non-factory)$70,000Administrative rent (non-factory)35,000Advertising and promotion expense41,000Depreciation-administrative22,000Depreciation-factory30,000Depreciation-selling17,000Direct labor175,000Factory rent18,000Factory supplies used12,000Finished goods inventory (January 1)57,000Finished goods inventory (December 31)52,000Indirect material used14,000Indirect labor19,000Materials inventory (January 1)13,000Materials inventory (December 31)20,000Net delivered cost of materials purchased138,000Other factory overhead26,000Sales845,000Sales salaries expense72,000Work in process inventory (January 1)18,000Work in process inventory ( December 31)31,000

Using the above data, prepare a schedule of cost of goods manufactured and sold.

Explanation / Answer

Before solving the question, please go through the following formulaes for better understanding

Direct Materials Used Beginning Raw Materials Inventory + Raw Material Purchases – Ending Raw Materials Inventory – Indirect Materials Used Total Manufacturing Cost Direct Materials + Direct Labor + Overhead applied Cost of Goods Manufactured Total Manufacturing Cost (Direct Materials + Direct Labor + Overhead applied) + Beginning Work In Process Inventory – Ending Work in Process Inventory Cost of Goods Sold Beginning Finished Goods Inventory + Cost of Goods Manufactured – Ending Finished Goods Inventory

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