Manufacturing costs:Direct materials:Direct materials inventoryWork-in-process inventoryFinished goods inventoryDirect materials used during the year amount to $1,096,000 and the cost of goods sold for the year was $1,278,000.Required:Prepare a cost of goods sold statement.Note: Enter your answers in thousands of dollars (I.e., 234,000 should be entered as 234).Materials availableDirect materials usedTotal manufacturing costsTotal costs of work-in-processCost of goods manufacturedFinished goods available for saleJanuary 1(Beginning)($000)$ 712Cost of goods soldDecember 31(Ending)($000)$7841,3302641,154139BIRWOOD FURNITURECost of Goods Sold StatementFor the Year Ended December 31($000)

Answered: January 1 (Beginning) ($000) $ 712…

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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Manufacturing costs:
Direct materials:
Direct materials inventory
Work-in-process inventory
Finished goods inventory
Direct materials used during the year amount to $1,096,000 and the cost of goods sold for the year was $1,278,000.
Required:
Prepare a cost of goods sold statement.
Note: Enter your answers in thousands of dollars (I.e., 234,000 should be entered as 234).
Materials available
Direct materials used
Total manufacturing costs
Total costs of work-in-process
Cost of goods manufactured
Finished goods available for sale
January 1
(Beginning)
($000)
$ 712
Cost of goods sold
December 31
(Ending)
($000)
$784
1,330
264
1,154
139
BIRWOOD FURNITURE
Cost of Goods Sold Statement
For the Year Ended December 31
($000)

Expert Solution

Step 1: Meaning of cost sheet

A cost sheet is a method of allocating total costs into different categories. It helps to identify the cost at different stages. These categories are raw material consumed, prime cost, manufacturing cost, and cost of goods sold. In prime cost direct material, direct labour are included. Raw material consumed includes beginning raw material, purchase of raw material and ending raw material deducted from them.

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