Question

Sharpland Industries is calculating is cost of Goods Manufactured year-end Sharlas accounting records show the following: The Raw Materials Inventory account had a beginning balance of $14.000 and an ending balance of $20.000. During the year, the company purchased 554.000 of direct material Director for the year old 120.000, while manufacturing overhead amounted to $160.000. The Work In Processinentory must had a beginning balance of 534.000 and an ending balance of 517.000. Assume that Raw Materials inventory contains only direct. Computer Cost of Goods Manufactured for the year int. The first step is to calculate the direct materials used during the year) Start by calculating the direct materials used during the year. Sharpland Industries Calculation of Direct Matera Used For Current Year Plus Less Direct Compute the cost of Goods Manufactured for the year Sharpland Industri Calculation of Cost of Goods Manufactured For Current Year Plus: Manuecturing coloured

Answer 1

Raw material opening= $ 14000

Raw material Ending = $20000

purchases of direct material = $54000

direct labour for the year ended= $126000

manufacturing overhead = $163000

Work in progress Opening= $24000

Work in progress closing = $17000

Put the figures in your performa as given in question:

I am solving as cost sheet performa:

Computation of Direct material Used:

Opening Stock of Raw material                                                      14000

add: Purchases of Direct Material                                                   54000

less: Opening Stock of Raw material                                             (20000)

Direct Material Used                                                                   48000

Computation of cost of Goods manufatured for the year:

Direct matrerial                                                                           48000

Direct Labour                                                                            126000

Direct cost                                                                                174000

Manufacturing Overhead                                                             163000

Add; Opening stock of Work in progress                                 24000

less: Closing stock of Work in progress                                       (17000)

cost of goods Manufactured                                                       344,000

Important notes:

1. opening stock is to be added because it is already existed in the books so that will be add

2. Closing stock less because closing stock will be shwn in the books of account at the end so that is less.

3. Raw material opening stock and closing stock will be add and less respectively from direct material.

4. Work in progress is process which not finished means that is still at the factory level. so that is accounted for calculation of Cost of goods manufactured.