Answer to Question #300081 in Accounting for jootee

Question

1.   Gore Company makes products for sporting events. The following data are for the year ended December 31:

Materials inventory, January 1…………………………….    $ 45,000

Materials inventory, December 31………………..……          65,000

Materials purchases………………………………………….….175,000

Direct labor…………………………………………………         225,000

Work in process inventory, January 1………………....         30,000

Work in process inventory, December 31……………...         40,000

Manufacturing overhead…………………………………         130,000

Finished goods inventory, January 1…………………..         80,000

Finished goods inventory, December 31……………..…..      140,000

 

Prepare a Cost of Goods Manufactured Statement and compute the cost of goods sold.

  

Answer 1

Core Company

Cost of Goods Manufactured Statement 

for the year ended December 31

Beginning raw material inventory...........................................................45,000

Add : Raw material purchased...............................................................175,000

Raw material available for use in production...................................220,000

Less : Ending raw material inventory.....................................................-65,000

Raw Material Used in production.....................................................155,000

Add : Direct Labor....................................................................................225,000

Add : Manufacturing overhead...............................................................130,000

Total Manufacturing cost incurred during the period.......................510,000

Add : Beginning work in process inventory...........................................30,000

Total Manufacturing cost to account for..........................................540,000

Less : Ending work in process inventory...............................................-40,000

Cost of goods manufactured..........................................................500,000

add : Beginning finished good inventory..............................................80,000

Cost of goods available for sale.....................................................580,000

Less : Ending finished goods inventory................................................-140,000

Cost of goods sold.........................................................................440,000