The following cost and inventory data are taken from the accounting records of a furniture manufacturing Company that uses absorption costing: I • Selling and Administration expenses € 7,000 • Purchases of direct materials 118,000 • Indirect labor30,000 - Maintenance of factory machines 6,000 • Insurance for factory workers 800 • Direct labor cost 70.000 • Total Rent (60% factory / 40% selling and administration) 50,000 • Factory Heat, water and power 20,000 1. D/M inventory at start of the year € 7,000 ; at end of the year €15,000 2. Work in process inventory at start of year 10,000; at end of year 5,000 3. Finished goods inventory at start of year 20,000; at end of year 35,000 Required Prepare the schedule of the cost of goods manufactured using absorption costing system
The following cost and inventory data are taken from the accounting records of a furniture manufacturing Company that uses
absorption costing:
I
• Selling and Administration expenses € 7,000
• Purchases of direct materials 118,000
• Indirect labor30,000
- Maintenance of factory machines 6,000
• Insurance for factory workers 800
• Direct labor cost 70.000
• Total Rent
(60% factory / 40% selling and administration) 50,000
• Factory Heat, water and power 20,000
1. D/M inventory at start of the year € 7,000 ; at end of the year €15,000
2. Work in process inventory at start of year 10,000; at end of year 5,000
3. Finished goods inventory at start of year 20,000; at end of year 35,000
Required
Prepare the schedule of the cost of goods manufactured using absorption costing system
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