Specter Company, a small manufacturer, has submitted the items below concerning last year's operations. The president's secretary, trying to be helpful, has alphabetized the list. Administrative salaries $2,400 Advertising expense 1,200 Depreciation—factory building 800 Depreciation—factory equipment 1,600 Depreciation—office equipment 180 Direct labour cost 21,900 Raw materials inventory, beginning 2,100 Raw materials inventory, ending 3,200 Finished goods inventory, beginning 46,980 Finished goods inventory, ending 44,410 General liability insurance expense 240 Indirect labour cost 11,800 Insurance on factory 1,400 Purchases of raw materials 14,600 Repairs and maintenance of factory 900 Sales salaries 2,000 Taxes on factory 450 Travel and entertainment expense 1,410 Work in process inventory, beginning 1,670 Work in process inventory, ending 1,110 Required: a. Prepare a schedule of Cost of Goods Manufactured in good form for the year. Use December and current year for time period. b. Determine the Cost of Goods Sold for the year. You must show all calculations.
Specter Company, a small manufacturer, has submitted the items below concerning last year's
operations. The president's secretary, trying to be helpful, has alphabetized the list.
Administrative salaries $2,400
Advertising expense 1,200
Depreciation—factory building 800
Depreciation—factory equipment 1,600
Depreciation—office equipment 180
Direct labour cost 21,900
Raw materials inventory, beginning 2,100
Raw materials inventory, ending 3,200
Finished goods inventory, beginning 46,980
Finished goods inventory, ending 44,410
General liability insurance expense 240
Indirect labour cost 11,800
Insurance on factory 1,400
Purchases of raw materials 14,600
Repairs and maintenance of factory 900
Sales salaries 2,000
Taxes on factory 450
Travel and entertainment expense 1,410
Work in process inventory, beginning 1,670
Work in process inventory, ending 1,110
Required:
a. Prepare a schedule of Cost of Goods Manufactured in good form for the year. Use
December and current year for time period.
b. Determine the Cost of Goods Sold for the year. You must show all calculations.
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