Question

Problem 2-1 The following information is available for Sipacore, Inc. for the fiscal year ending December 31, 2017: Beginning balance in Work in Process Inventory $230,000 Ending balance in Work in Process Inventory 280,000 Beginning balance in Finished Goods Inventory 450,000 Ending balance in Finished Goods Inventory 380,000 Direct material cost 2,840,000 Direct labor cost 2,860,000 Manufacturing overhead 1,700,000 Selling and administrative expenses 1,310,000 Sales 8,560,000

Prepare a schedule of cost of goods manufactured.

Sipacore, Inc. Schedule of Cost of Goods Manufactured For the Quarter Ended December 31, 2017December 31, 2017For the Year Ended December 31, 2017
Ending balance in finished goods inventoryEnding balance in work in process inventoryBeginning balance in work in process inventoryCost of goods manufacturedSalesBeginning balance in finished goods inventoryDirect materialManufacturing overheadDirect laborCurrent manufacturing costsSelling and administrative expensesTotal current manufacturing costsTotal					$
AddLess : Ending balance in work in process inventoryDirect materialBeginning balance in finished goods inventoryDirect laborSalesTotal current manufacturing costsBeginning balance in work in process inventorySelling and administrative expensesEnding balance in finished goods inventoryManufacturing overheadCost of goods manufacturedCurrent manufacturing costsTotal :
Direct labor    Ending balance in work in process inventory    Manufacturing overhead    Cost of goods manufactured    Selling and administrative expenses    Ending balance in finished goods inventory    Beginning balance in finished goods inventory    Current manufacturing costs    Total current manufacturing costs    Direct material    Total    Sales    Beginning balance in work in process inventory			$
Cost of goods manufactured    Beginning balance in finished goods inventory    Direct labor    Selling and administrative expenses    Current manufacturing costs    Total current manufacturing costs    Total    Sales    Beginning balance in work in process inventory    Ending balance in work in process inventory    Ending balance in finished goods inventory    Direct material    Manufacturing overhead
Beginning balance in finished goods inventory    Ending balance in work in process inventory    Direct material    Current manufacturing costs    Ending balance in finished goods inventory    Sales    Total current manufacturing costs    Direct labor    Beginning balance in work in process inventory    Manufacturing overhead    Cost of goods manufactured    Selling and administrative expenses    Total
Ending balance in finished goods inventoryDirect materialBeginning balance in finished goods inventorySelling and administrative expensesDirect laborManufacturing overheadBeginning balance in work in process inventoryCost of goods manufacturedCurrent manufacturing costsTotal current manufacturing costsTotalSalesEnding balance in work in process inventory
Direct labor    Manufacturing overhead    Cost of goods manufactured    Beginning balance in work in process inventory    Beginning balance in finished goods inventory    Total    Sales    Selling and administrative expenses    Direct material    Ending balance in finished goods inventory    Current manufacturing costs    Total current manufacturing costs    Ending balance in work in process inventory
AddLess : TotalSalesEnding balance in finished goods inventoryManufacturing overheadCost of goods manufacturedBeginning balance in work in process inventorySelling and administrative expensesEnding balance in work in process inventoryBeginning balance in finished goods inventoryDirect laborDirect materialCurrent manufacturing costsTotal current manufacturing costs
Beginning balance in finished goods inventoryManufacturing overheadCurrent manufacturing costsEnding balance in work in process inventoryCost of goods manufacturedDirect laborTotal current manufacturing costsDirect materialSalesBeginning balance in work in process inventorySelling and administrative expensesTotalEnding balance in finished goods inventory					$

Answer 1

Solution

Sipacore, Inc.
Schedule of Cost of Goods Manufactured
For the Year Ended December 31, 2017
Beginning work in process inventory			$ 230,000
Direct material used		$ 2,840,000
Direct labor		$ 2,860,000
Manufacturing overhead		$ 1,700,000
Current manufacturing costs			$ 7,400,000
Total current manufacturing cost			$ 7,630,000
Less: Ending balance in work in process inventory			$ 280,000
Cost of goods manufactured			$ 7,350,000