Question

Cornelius Company produces women's clothing. During the year, the company incurred the following costs: Factory rent Direct labor Utilities-factory Purchases of direct materials Indirect materials Indirect labor $ 380,000 300,000 38,000 555,000 66,000 60,000 Inventories for the year were as follows: Materials Work-in-Process Finished Goods January 1 $ 25,000 45,000 135,000 December 31 $ 40,000 40,000 75,000 Required: 182. Prepare a statement of cost of goods manufactured and calculate cost of goods sold. Cornelius Company Statement of Cost of Goods Manufactured and Sold For the Year Ended December 31 Direct materials

Answer 1

		STATEMENT OF COST OF GOODS MANUFACTURED AND SOLD
		Direct Materials:
	A	Beginning Direct materials Inventory	$25,000
	B	Purchases	$555,000
	C	Ending Direct materials inventory	$40,000
	D=A+B-C	Cost of materials		$540,000
	E	Cost of Direct Labor		$300,000
		Factory Overhead:
	F	Factory Rent	$380,000
	G	Utilities	$38,000
	H	Indirect Labor	$66,000
	I	Indirect materials	$60,000
	J=F+G+H+I	Total Factory Overhead		$544,000
	K=D+E+J	Total costs added to work in process inventory		$1,384,000
	L	Beginning Work in Process Inventory		$45,000
	M	Ending Work in process inventory		$40,000
	N=K+L-M	COST OF GOODS MANUFACTURED		$1,389,000
	P	Beginning Finished Goods Inventory		$135,000
	Q=N+P	Finished goods available		$1,524,000
	R	Less: Ending Finished Goods Inventory		$75,000
	S=Q-R	COST OF GOODS SOLD		$1,449,000