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 Prime costs 320,000 Work in process 1/1/2017 34,000 Gross margin percentage based on revenues 25% Finished goods 1/1/2017 40,000 Direct materials consumed 120,000 Direct materials 1/1/2017 20,000 Cost of goods available for sale 4,60,000 Required: Prepare the statement of cost of goods sold.
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 Prime costs 320,000 Work in process 1/1/2017 34,000 Gross margin percentage based on revenues 25% Finished goods 1/1/2017 40,000 Direct materials consumed 120,000 Direct materials 1/1/2017 20,000 Cost of goods available for sale 4,60,000 Required: Prepare the statement of cost of goods sold.
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 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
Prime costs 320,000 Work in process 1/1/2017 34,000
Gross margin percentage based on
revenues
25% Finished goods 1/1/2017 40,000
Direct materials consumed 120,000 Direct materials 1/1/2017 20,000
Cost of goods available for sale 4,60,000
Required: Prepare the statement of cost of goods sold.
Transcribed Image Text:d) 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
Prime costs
Gross margin percentage based on
320,000 Work in process 1/1/2017
25% Finished goods 1/1/2017
34,000
40,000
revenues
Direct materials consumed
Cost of goods available for sale
Required: Prepare the statement of cost of goods sold. (.
120,000 Direct materials 1/1/2017
4,60,000
20,000
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