Question

12. ABC Manufacturing Company has the following data for 2019 (amounts in millions) Click the icon to view the information) Prepare the schedule of cost of goods manufactured and the cost of goods sold section of the income statement for the year ended December 31, 2019. Schedule of Cost of Goods Manufactured Year Ended December 31, 2019 (in millions) Direct Materials Used Direct Materials Used

Answer 1

Solution

Cost of Goods Manufactured and Cost of goods sold
For the year ended December 31, 2019 ($ In million)
Beginning Work in process			$      12.00
Direct materials used
Raw material Inventory Beginning	$        5.00
Raw material Purchased	$     25.00
Raw material available for use	$     30.00
Less: Raw material Inventory Ending	$        7.00
Direct Material Used		$     23.00
Direct labor		$     36.00
Manufacturing Overheads		$     17.00
Total manufacturing cost incurred during the year			$      76.00
Total manufactiuring cost to account for			$      88.00
Less: Ending WIP inventory			$      16.00
Cost of goods manufactured			$      72.00