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Concept Introduction: Cost of goods
Cost of manufactured goods represents total cost pertaining to finished goods produced in the accounting period. The manufacture first uses the raw material and with the help of direct labor and manufacturing
To Prepare:
To prepare schedule of cost of goods manufactured.
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Answer to Problem 13E
Schedule of cost of goods manufactured | ||
Particulars | Amount ($) | Amount ($) |
Raw materials- | | |
Raw materials inventory, Beginning | 37,000 | |
Purchase of raw material | 175,600 | |
Rw material available for use | 212,600 | |
Less: Raw material inventory, Ending | (42,700) | |
Raw material used | | 169,900 |
Direct labor | | 225,000 |
Manufacturing overhead- | | |
Factory supplies used | 17,840 | |
Indirect labor | 47,000 | |
Repairs- Factory equipment | 5,250 | |
Rent cost of factory building | 57,000 | |
Total manufacturing overhead | | 127,090 |
Total manufacturing costs | | 521,990 |
Add: Work in process inventory, Beginning | | 53,900 |
Total cost of work in process | | 575,890 |
Less: Work in process inventory, Ending | | 41,500 |
Cost of goods manufactured | 534,390 |
Explanation of Solution
Cost of goods manufactured is calculated as follows-
Conclusion:
Thus, Cost of goods manufactured calculated is $534,390.
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Chapter 18 Solutions
Fundamental Accounting Principles
- Home Insert Draw Page Layout Formulas Data Review View Automate Developer Calibri (Body) 12 ✓ Α Αν Conditional Formatting ✓ ☑Insert v Σ Custom Paste B I U ✓ ✓ $ ✓ %9 0 .00 →0 Format as Table ✓ Cell Styles ▾ Delete ✓ Format ✓ C26 fx A B D E F G 1 Instruction: 2 1. Please complete the following budget plan using appropriate cell references format (the cells highlighted in grey) 3 2. Please use fill handler to complete the table. E.g. in cell C16, build one formula and generate other formulas to D16 and E16 with fill handler. 4 3. For "Cost of Goods Sold" section (before "COGS Subtotal"), build one formula in cell C19, and generate formulas until E21. Overhead (B21) is 20% (B10) of the labor cost (B20). 5 4. For "COGS Subtotal", build one formula in C22, and generate the formulas to E22. 6 5. Similar requirements for "Selling Expenses" and "Projected Earnings" section. 7 6. Please be noted, for all items under "Cost of Goods Sold", and "Selling Expenses" the cost is per ONE shoe, not per…arrow_forwardProvide correct solution and accountingarrow_forwardSolve this question accountingarrow_forward
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