Question

Q-1) Following inventory and cost data relate to a manufacturing company for 2017. Calculate the Cost of Goods Sold as at December 31, 2017.

                                                  Item                                                 January 1, 2017         December 31, 2017

                                                 Raw materials                                         8,700                                      7,000

Work in process                                       15,000 13,600

Finished goods                                        16,300 12,000

                                                 Raw materials purchase                                                                     98,700

                                                  Direct labor                                                                                               42,700

                                                  Factory rent                                                                                               8,000

                                                  Factory utilities                                                                                      10,700

Indirect materials 6,600

Indirect labor   9,300

                                                 Operating expenses                                                                              17,000

Answer 1

Cost of Goods Sold $ 183,400 Working Notes: Schedule of Cost of Goods Manufactured For the Year Ended December 31,2017 Direct Material Raw material inventory, january 1,2017 $ 8,700 Add: Purchase of Raw materials $ 98,700 Direct Material avaliable $ 107,400 Less: Raw material inventory, December 31, 2017 $ 7,000 Direct Materials Used Direct Labor $ 100,400 $ 42,700 $ $ $ $ 8,000 10,700 6,600 9,300 Manufacturing Overhaed Factory Rent Factory Utilities Indirect Materials Indirect Labor Total Manufacturing Overhead Total Manufacturing Cost Add: work in process Inventory, January 1,2017 Total Cost of Work in Process Less: work in Process Inventory, December 31, 2017 Cost of Goods Manufactured $ 34,600 $ 177,700 $ 15,000 $ 192,700 $ 13,600 $ 179,100

Schedule of Cost of Goods Sold For the Year Ended December 31,2017 Finished Goods Inventory, January 1,2017 $ Add: Cost of goods Manufactured $ Cost of Goods avaialbel for Sale $ less: Finished Goods Inventory, December 31,2017 $ Cost of Goods Sold $ 16,300 179,100 195,400 12,000 183,400