Question

4 Check my work Alexandria Aluminum Company the beginning and end of 20x1 ufacturer of tecyclable soda ans e folowing inventory balances at Part 2 of 2 Raw material Work in process Finished goods 60,000 120,000 160,000 $ 70,000 115,000 165,006 2.5 points During 20x1, the company purchased $250.000 of raw material and spent $400000 on direct labor. Manufacturing overhead costs were as follo Indirect material Indirect labor Depreciation on plant and equipmert Utilities Other 10P 008 2p.eea e,eea Pri Refeténces Sales revenue was $1,110,000 for the year ing and administrativeeeses for the year amounted to $110000 adm The firm's tax rate is 40 percent. 2 Preparea schedue of cos of oods ole ALUMINUM COMPANY cheo of Gost of Goods Sold For the Year Ended December 31.20x1 Add Cost of goods manufacturedtit Cost of goods availahle for salealtmlnti 834.00D Cost of goods sold CO 4 of 4 Next GraW 13/2019 Type here to search

Answer 1

Answer

• Requirement 2: Statement of Cost of Goods Sold

Finished Goods Inventory Jan 1	$              160,000
Add: Cost of Goods manufactured	$              834,000
Cost of Goods available for sale	$              994,000
Less: Finished Goods inventory Dec 31	$              165,000
Cost of Goods Sold	$              829,000

--Working: Cost of Goods manufactured

WIP Jan 1			$            120,000
Direct Materials:
Raw material Jan 1	$                60,000
Raw material purchases	$              250,000
Total raw material available for use	$              310,000
Less: Raw material Dec 31	$                70,000
Direct materials used		$             240,000
Direct Labor		$             400,000
Manufacturing overhead		$             189,000
Total manufacturing costs			$            829,000
Total cost of WIP			$            949,000
Less: WIP Dec 31			$            115,000
Cost of Goods manufactured			$            834,000