Concept introduction:
Cost of goods manufactured and sold statement represents the
To calculate:
The missing values.
Answer to Problem 19E
Particulars | $ (case 1) | $ (Case 2) | $ (Case 3) | $ (Case 4) |
Beginning Raw Materials | 7,000 | (e) 9,000 | 16,000 | 55,000 |
Raw material purchased | 63,000 | 24,500 | 33,312 | (o) 140,000 |
Indirect material issued | 1,400 | 2,000 | 1,200 | 1,000 |
Ending raw material | 2,800 | 4,500 | (i) 21,136 | 46,750 |
Direct material used | (a) 65,800 | 27,000 | 26,976 | (n) 147,250 |
Direct labor | 40,600 | (f) 43,500 | (j) 22,480 | 61,625 |
Manufacturing overhead applied | 72,800 | 80,700 | 24,864 | 270,865 |
Total current manufacturing costs | (b) 179,200 | 151,200 | 74,320 | (m) 479,740 |
Beginning work in process | 57,400 | 65,200 | (k) 30,060 | 51,260 |
Ending work in process | (c) 42,000 | (g) 56,800 | 33,000 | 118,050 |
Cost of goods manufactured | 194,600 | 159,600 | 71,380 | 412,950 |
Beginning finished goods | 100,800 | (h) 42,600 | 41,520 | (p) 205,350 |
Ending finished goods | 112,000 | 60,200 | (l) 22,200 | 198,600 |
Cost of goods sold | (d) 183,400 | 142,000 | 90,700 | 419,700 |
Explanation of Solution
(a) Calculation of ‘Direct materials used’:
Particulars | $ (Case 1) |
Beginning raw materials | 7,000 |
(+) Raw materials purchased | 63,000 |
(-) Indirect materials issued | (1,400) |
(-) Ending raw materials | (2,800) |
Direct materials used | 65,800 |
(b) Calculation of ‘Total current manufacturing costs’
Particulars | $ (Case 1) |
Direct materials used | 65,800 |
(+) Direct Labor | 40,600 |
(+) Manufacturing overhead applied | 72,800 |
Total current manufacturing costs | 179,200 |
(c) Calculation of ‘Ending work in processes
Particulars | $ (Case 1) |
Total current manufacturing costs | 179,200 |
(+) Beginning work in process | 57,400 |
(-) Ending work in process | (42,000) |
Cost of goods manufactured | 194,600 |
(d) Calculation of ‘Cost of goods sold’
Particulars | $ (Case 1) |
Cost of goods manufactured | 194,600 |
(+) Beginning finished goods | 100,800 |
(-) Ending finished goods | (112,000) |
Cost of goods sold | 183,400 |
(e) Calculation of ‘Beginning raw materials’
Particulars | $ (Case 2) |
Beginning raw materials | 9,000 |
(+) Raw materials purchased | 24,500 |
(-) Indirect materials issued | (2,000) |
(-) Ending raw materials | (4,500) |
Direct materials used | 27,000 |
(f) Calculation of ‘Direct labor’
Particulars | $ (Case 2) |
Direct materials used | 27,000 |
(+) Direct Labor | 43,500 |
(+) Manufacturing overhead applied | 80,700 |
Total current manufacturing costs | 151,200 |
(g) Calculation of ‘Ending work in process’
Particulars | $ (Case 2) |
Total current manufacturing costs | 151,200 |
(+) Beginning work in process | 65,200 |
(-) Ending work in process | (56,800) |
Cost of goods manufactured | 159,600 |
(h) Calculation of ‘Beginning finished goods’
Particulars | $ (Case 2) |
Cost of goods manufactured | 159,600 |
(+) Beginning finished goods | 42,600 |
(-) Ending finished goods | (60,200) |
Cost of goods sold | 142,000 |
(i) Calculation of ‘Ending raw materials’
Particulars | $ (Case 3) |
Beginning raw materials | 16,000 |
(+) Raw materials purchased | 33,312 |
(-) Indirect materials issued | (1,200) |
(-) Ending raw materials | (21,136) |
Direct materials used | 26,976 |
(j) Calculation of ‘Direct Labor’
Particulars | $ (Case 3) |
Direct materials used | 26,976 |
(+) Direct Labor | 22,480 |
(+) Manufacturing overhead applied | 24,864 |
Total current manufacturing costs | 74,320 |
(k) Calculation of ‘Beginning work in process’
Particulars | $ (Case 3) |
Total current manufacturing costs | 74,320 |
(+) Beginning work in process | 30,060 |
(-) Ending work in process | (33,000) |
Cost of goods manufactured | 71,380 |
(l) Calculation of ‘Ending finished goods’
Particulars | $ (Case 2) |
Cost of goods manufactured | 71,380 |
(+) Beginning finished goods | 41,520 |
(-) Ending finished goods | (22,200) |
Cost of goods sold | 90,700 |
(m) Calculation of ‘Total current manufacturing costs’
Particulars | $ (Case 4) |
Total current manufacturing costs | 479,740 |
(+) Beginning work in process | 51,260 |
(-) Ending work in process | (118,050) |
Cost of goods manufactured | 412,950 |
(n) Calculation of ‘Direct material used’
Particulars | $ (Case 4) |
Direct materials used | 147,250 |
(+) Direct Labor | 61,625 |
(+) Manufacturing overhead applied | 270,865 |
Total current manufacturing costs | 479,740 |
(o) Calculation of ‘Raw material purchases’
Particulars | $ (Case 4) |
Beginning raw materials | 55,000 |
(+) Raw materials purchased | 140,000 |
(-) Indirect materials issued | (1,000) |
(-) Ending raw materials | (46,750) |
Direct materials used | 147,250 |
(p) Calculation of ‘Beginning finished goods’
Particulars | $ (Case 2) |
Cost of goods manufactured | 412,950 |
(+) Beginning finished goods | 205,350 |
(-) Ending finished goods | (198,600) |
Cost of goods sold | 419,700 |
Want to see more full solutions like this?
Chapter 2 Solutions
Managerial Accounting
- Determine the adjusted Cost of Goods Sold by using the data provided in the attached images.arrow_forwardCompute ending inventory and cost of goods solds under each of the following methods: A. Weighted average costarrow_forwardPlease help with the following question and refer to data tables to answer part a, b, c, d, e, and f: Also, Present the journal entry for (f) cost of goods sold.arrow_forward
- Given the following calculate the cost of ending inventory and goods sold using fifo.arrow_forwardWhich of the following statements about FIFO is true? Select one: a. All of the statements are correct b. Cost of goods sold is calculated using the costs of the earliest purchased inventory. c. The value of merchandise inventory is made up of the costs of the most recently purchased inventory. d. Under FIFO, a schedule is used to track the different costs of purchased inventory.arrow_forwardDetermine the cost assigned to ending inventory and to cost of goods sold using weighted average.arrow_forward
- Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification.arrow_forwarda.) determine the cost assigned to ending inventory and to the cost of goods sold using FIFO. b.) determine the cost assigned to ending inventory and to cost of good solc using LIFO. c.) compute the gross margin for each methodarrow_forwardThe accounting for inventory involves determining the correct unit counts comprising ending inventory, and then assigning a value to those units. Explain the 3 important types of Inventoriesarrow_forward
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College