Question

Cost of Goods Sold, Cost of Goods Manufactured Timbuk 3 Company has the following information for March: Cost of direct materials used in production $21,000 Direct labor 54,250 Factory overhead 35,000 Work in process inventory, March 1 87,500 Work in process inventory, March 31 92,750 Finished goods inventory, March 1 36,750 Finished goods inventory, March 31 42,000 a. For March, determine the cost of goods manufactured. Using the data given, prepare a statement of Cost of Goods Manufactured. Timbuk 3 Company Statement of Cost of Goods Manufactured

Answer 1

Requirement A

Timbuk 3 Company

Statement of Cost of Goods Manufactured

Particulars	Amount	Amount
Work in Process Inventory March 01		87,500
Cost of Direct Materials Used in Production	21,000
Direct Labour	54,250
Factory Overhead	35,000
Total Manufacturing Costs incurred during March		110,250
Total Manufacturing Costs		197,750
Less: Work in Process Inventory March 31		92,750
Cost of Goods Manufactured		105,000

Notes

Total Manufacturing Costs incurred during March = Cost of Direct Materials Used in Production + Direct Labour + Factory Overhead

Total Manufacturing Costs = Work in Process Inventory March 01 + Total Manufacturing Costs incurred during March

Requirement B

Timbuk 3 Company

Statement of Cost of Goods Sold

Particulars	Amount
Finished Goods Inventory March 01	36,750
Add: Cost of Goods Manufactured	105,000
Cost of Goods Available for Sale	141,750
Less: Finished Goods Inventory March 31	42,000
Cost of Goods Sold	99,750