A distraught employee, Fang W. Arson, put a torch to manufacturing plant on a blustery February 26.The resulting blaze destroyed the plant and its contents. Fortunately, certain accounting records werekept in another building. They reveal the following for the period from January 1, 2017 to February 26,2017.6,00,000 Direct materials 26/2/2017RevenuesIndirect manufacturing costs 60 % of conversion costs56,000320,000 Work in process 1/1/201725% Finished goods 1/1/201734,00040,000Prime costsGross margin percentage based onrevenues120,000 Direct materials 1/1/20174,60,000Direct materials consumed20,000Cost of goods available for saleRequired: Prepare the statement of cost of goods sold.

The statement of cost of goods sold is calculated as difference between sales revenue and gross…

A distraught employee, Fang W. Arson, put a torch to manufacturing plant on a blustery February 26 The resulting blaze destroyed the plant and its contents. Fortunately, certain accounting records were kept in another building. They reveal the following for the period from January 1, 2017 to February 26 2017. Revenues 6,00,000 Direct materials 26/2/2017 56,000 Indirect manufacturing costs 60 % of conversion costs 320,000 Work in process 1/1/2017 25% Finished goods 1/1/2017 34,000 40,000 Prime costs Gross margin percentage based on revenues Direct materials consumed 120,000 Direct materials 1/1/2017 20,000 Cost of goods available for sale Required: Prenare the statement of cost of goods sold 4,60,000

A distraught employee, Fang W. Arson, put a torch to manufacturing plant on a blustery February 26 The resulting blaze destroyed the plant and its contents. Fortunately, certain accounting records were kept in another building. They reveal the following for the period from January 1, 2017 to February 26 2017. Revenues 6,00,000 Direct materials 26/2/2017 56,000 Indirect manufacturing costs 60 % of conversion costs 320,000 Work in process 1/1/2017 25% Finished goods 1/1/2017 34,000 40,000 Prime costs Gross margin percentage based on revenues Direct materials consumed 120,000 Direct materials 1/1/2017 20,000 Cost of goods available for sale Required: Prenare the statement of cost of goods sold 4,60,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A distraught employee, Fang W. Arson, put a torch to manufacturing plant on a blustery February 26. The resultingblaze destroyed the plant and its contents. Fortunately, certain accounting records were kept in another building. Theyreveal the following for the period from January 1, 2017 to February 26, 2017.Revenues 6,00,000 Direct materials 26/2/2017 56,000Indirect manufacturing costs 60 % of conversion costsPrime costs 320,000 Work in process 1/1/2017 34,000Gross margin percentage based onrevenues 25% Finished goods 1/1/2017 40,000Direct materials consumed 120,000 Direct materials 1/1/2017 20,000Cost of goods available for sale 4,60,000Required: Prepare the statement of cost of goods sold.
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