1 » X Company, a manufacturer, reported the following inventory balances for 201

ID: 2773954 • Letter: 1

Question

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X Company, a manufacturer, reported the following inventory balances for 2014:

The following additional information was available:

Direct materials costing $63,251 were purchased.

Direct labor cost was $31,103.

Overhead applied was $51,005.

Selling and administrative costs were $38,316.

Sales were $444,219.

What was Cost of Goods Sold for the year?

Direct Materials Work in Process Finished Goods January 1 $17,892 $12,522 $14,518 December 31 $12,328 $15,372 $14,518

Computation of cost of goods sold

Particulars amount($) amount($)

beginning direct materials 17892

add: direct materials purchased 63251

81143

less: closing direct material (12328)

material consumed 68815

direct labour 31103

prime cost 99918

add : factory overheads 51005

add: beginning work in progress 12522

less: ending work in progress (15372)

factory cost 148073

office and administrative overheads :

add: beginning finished goods 14518

less : ending finished goods (14518)

cost of goods sold 148073

add: selling and administrative overheads 38316

total cost 186389

profit 257830

sales 444219.

cost of goods sold is 148073

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