Question

Cornelius Company produces women's clothing. During the year, the company incurred the following costs: $ 405,500 351,000 Factory rent Direct labor Utilities-factory Purchases of direct materials 44,800 597,500 80,450 70,200 Indirect materials Indirect labor Inventories for the year were as follows: .ces January 1 $ 33,500 49,250 152,000 December 31 Materials $ 52,750 43,400 84,350 Work-in-Process Finished Goods Required: 1&2. Prepare a statement of cost of goods manufactured and calculate cost of goods sold.

Answer 1

Cornelius Company 1) Schedule of Cost of Goods Manufactured For Year Ended December 31 Direct materials Raw materials inventory, January 1 Add: Raw materials purchases Raw materials available for use Less: Raw materials inventory, December 31 Direct materials used Direct labor cost Factory overhead: Utilities- factory $33,500 $597,500 $631,000 $52,750 $578,250 $351,000 $44,800 Factory rent Indirect materials $405,500 S80,450 Indirect labour S70,200 Total factory overhead costs Total manufacturing costs Add: Work in process inventory, January 1 Total manufacturing costs to account for Less: Work in process inventory, December 31 S600,950 $1,530,200 $49,250 $1,579,450 $43,400 S1,536,050 Cost of goods manufactured 2) The cost of goods sold: Finished goods inventory, January 1 Add: Cost of goods manufactured $152,000 $1,536,050 $1,688,050 $84,350 $1,603,700 Cost of goods available for sale Less: Finished goods inventory, December 31 Cost of goods sold