Question

12.30 (LO 4) Sinjay Corporation incurred the following costs while manufacturing its product H AI CUNUS Materials used in product Depreciation on plant Property taxes on warehouse Labour costs of assembly-line workers Factory supplies used $120,000 60,000 7,500 110,000 25,000 Advertising expense Property taxes on plant Delivery expense Sales commissions Salaries paid to sales clerks $45,000 19,000 21,000 35,000 50,000 Work in process inventory was $10,000 at January 1 and $14,000 at December 31. Finished goods inven- tory was $60,000 at January 1 and $50,600 at December 31. Instructions obrotowolto attoo a. Calculate the cost of goods manufactured. b. Calculate the cost of goods sold. ubodule is presented below for Cepeda Man-

Answer 1

a ) $ $ 120,000 110,000 60000 25000 Cost of Goods Manufactured Direct Material used Direct Labor Manufacturing Overhead Depreciation On Plant Factory Supplies Used Property Taxes on Plant Total Manufacturing Overhead Total Manufacturing cost Beginning Work in Process Total cost of Work in process Ending Work in Process Cost of Goods Manufactured 19000 $ $ Add 104,000 334,000 10,000 344,000 14,000 330,000 $ less $ (b) Cost of Goods sold Add Beginning Finished Goods Inventory Cost of Goods Manufactured Cost of goods available for sale Ending Inventory of Finished Goods Cost Of Goods Sold $ $ $ $ $ 60,000 330,000 390,000 50,600 339,400 Less All other expenses not included in manufactring overhead are selling, general & administrative expenses and will be included in income statement.