Schedule of cost of goods manufactured: A schedule of cost of goods manufactured is a schedule explaining the flow of costs from raw material to the result as cost of goods manufactured for a period. The cost of goods manufactured amount if transferred to the finished goods inventory and is used to calculate cost of goods sold on income statement. Cost of goods sold: The cost of goods sold can be defined as the cost incurred in order to convert a raw material into finished goods. The cost of goods sold includes direct expenses i.e. direct material, direct labor and overheads like - variable manufacturing overheads and fixed manufacturing overhead as well. It is subtracted from the sales to know the gross profit of the business. Requirement 1 To compute: Raw material available for use in production

Question

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Answer 1

Question

Chapter 18, Problem 16E

To determine

Concept Introduction:

Schedule of cost of goods manufactured: A schedule of cost of goods manufactured is a schedule explaining the flow of costs from raw material to the result as cost of goods manufactured for a period. The cost of goods manufactured amount if transferred to the finished goods inventory and is used to calculate cost of goods sold on income statement.

Cost of goods sold: The cost of goods sold can be defined as the cost incurred in order to convert a raw material into finished goods. The cost of goods sold includes direct expenses i.e. direct material, direct labor and overheads like - variable manufacturing overheads and fixed manufacturing overhead as well. It is subtracted from the sales to know the gross profit of the business.

Requirement 1

To compute:

Raw material available for use in production

Expert Solution

Answer to Problem 16E

Solution:

Raw material available for use in production = $ 677,500.

Explanation of Solution

The raw material available for use in production as under $-$

$R a w m a t e r i a l a v a i l a b l e = B e g i n n i n g R a w m a t e r i a l i n v e n t o r y + R a w m a t e r i a l p u r c h a s e s$

Given,

• Beginning raw material inventory = $ 145,500

• Raw material purchases = $ 532,000

$\begin{array}{l} R a w m a t e r i a l a v a i l a b l e = B e g i n n i n g R a w m a t e r i a l i n v e n t o r y + R a w m a t e r i a l p u r c h a s e s \\ R a w m a t e r i a l a v a i l a b l e = $ 145, 500 + $ 532, 000 \\ R a w m a t e r i a l a v a i l a b l e = $ 677, 500 \end{array}$

The raw material available for use in production = $ 677,500.

Conclusion

Thus, the raw material available for use in production has been calculated.

To determine

Requirement 2

To compute:

Direct materials used in production

Expert Solution

Answer to Problem 16E

Solution:

Direct materials used in production = $ 502,500

Explanation of Solution

The raw material used in production is calculated as under $-$

Given,

• Raw material available for use in production = $ 677,500

• Ending raw material = $ 175,000

$R a w m a t e r i a l used = R a w m a t e r i a l a v a i l a b l e f o r u s e i n p r o d u c t i o n - R a w m a t e r i a l E n d i n g$

$\begin{array}{l} R a w m a t e r i a l us e d = $ 677,500 - $ 175,000 \\ R a w m a t e r i a l u s e d = $ 502,500 \end{array}$

The raw material used in production is $ 502,500

To determine

Requirement 3

To compute:

Total work in process

Expert Solution

Answer to Problem 16E

Solution:

Total work in process = $ 1,687,000

Explanation of Solution

The total work in process is calculated as under $-$

$\begin{array}{l} T o t a l w o r k i n p r o c e s s = \\ D i r e c t m a t e r i a l u s e d \\ + D i r e c t L a b o r \\ + F a c t o r y o v e r h e a d s \\ + B e g i n n i n g w o r k i n p r o c e s s i n v e n t o r y \end{array}$

Given,

• Direct material used = $ 502,500

• Direct Labor = $ 350,000

• Factory overheads = $ 750,000

• Beginning work in process inventory = $ 84,500

$\begin{array}{l} T o t a l w o r k i n p r o c e s s = $ 502,500 + $ 350,000 + $ 750,000 + $ 84,500 \\ T o t a l w o r k i n p r o c e s s = $ 1, 687, 000 \end{array}$

The total work in process is = $ 1,687,000

Conclusion

Thus, the total work in process has been calculated.

To determine

Requirement 4

To compute:

Ending work in process inventory

Expert Solution

Answer to Problem 16E

Solution:

Ending work in process inventory = $ 93,500

Explanation of Solution

The ending work in process inventory is calculated as under $-$

$E n d i n g w o r k i n p r o c e s s i n v e n t o r y = T o t a l w o r k i n p r o c e s s - F i n i s h e d g o o d s m a n u f a c t u r e d$

Given,

• Total work in process = $ 1,687,000

• Finished goods manufactured = $ 1,593,500

$\begin{array}{l} E n d i n g w o r k i n p r o c e s s i n v e n t o r y = T o t a l w o r k i n p r o c e s s - F i n i s h e d g o o d s m a n u f a c t u r e d \\ E n d i n g w o r k i n p r o c e s s i n v e n t o r y = $ 1, 687, 000 - $ 1, 593, 500 \\ E n d i n g w o r k i n p r o c e s s i n v e n t o r y = $ 93, 500 \end{array}$

The ending work in process inventory = $ 93,500.

Conclusion

Thus, the ending work in process inventory has been computed.

To determine

Requirement 5

To compute:

Beginning finished goods inventory

Expert Solution

Answer to Problem 16E

Solution:

Beginning finished goods inventory = $ 146,750

Explanation of Solution

The beginning finished goods inventory is calculated as under $-$

$\begin{array}{l} B e g i n n i n g f i n i s h e d g o o d s i n v e n t o r y = \\ F i n i s h e d g o o d s a v a i l a b l e f o r s a l e \\ - F i n i s h e d g o o d m a n u f a c t u r e d \end{array}$

Given,

• Finished goods available for sale = $ 1,740,250

• Finished goods manufactured = $ 1,593,500

$\begin{array}{l} B e g i n n i n g f i n i s h e d g o o d s i n v e n t o r y = $ 1, 740, 250 - $ 1, 593, 500 \\ B e g i n n i n g f i n i s h e d g o o d s i n v e n t o r y = $ 146, 750 \end{array}$

The beginning finished goods inventory = $ 146,750.

Conclusion

Thus, the beginning finished goods inventory has been computed.

To determine

Requirement 6

To compute:

Finished goods sold

Expert Solution

Answer to Problem 16E

Solution:

Finished goods sold = $ 1,600,300

Explanation of Solution

The finished goods sold will be calculated as under $-$

$F i n i s h e d g o o d s s o l d = F i n i s h e d g o o d s a v a i l a b l e f o r s a l e - E n d i n g f i n i s h e d g o o d s i n v e n t o r y$ Given,

• Finished goods available for sale = $ 1,740,250

• Ending finished goods inventory = $ 139,950

$\begin{array}{l} F i n i s h e d g o o d s s o l d = F i n i s h e d g o o d s a v a i l a b l e f o r s a l e - E n d i n g f i n i s h e d g o o d s i n v e n t o r y \\ F i n i s h e d g o o d s s o l d = $ 1, 740, 250 - $ 139, 950 \\ F i n i s h e d g o o d s s o l d = $ 1, 600, 300 \end{array}$

The finished goods sold = $ 1600,300.

Conclusion

Thus, the finished goods sold has been calculated.

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At the beginning of the year

What is the cost of goods sold for the year?

Answer 2

Question

Chapter 18, Problem 16E

To determine

Concept Introduction:

Schedule of cost of goods manufactured: A schedule of cost of goods manufactured is a schedule explaining the flow of costs from raw material to the result as cost of goods manufactured for a period. The cost of goods manufactured amount if transferred to the finished goods inventory and is used to calculate cost of goods sold on income statement.

Cost of goods sold: The cost of goods sold can be defined as the cost incurred in order to convert a raw material into finished goods. The cost of goods sold includes direct expenses i.e. direct material, direct labor and overheads like - variable manufacturing overheads and fixed manufacturing overhead as well. It is subtracted from the sales to know the gross profit of the business.

Requirement 1

To compute:

Raw material available for use in production

Expert Solution

Answer to Problem 16E

Solution:

Raw material available for use in production = $ 677,500.

Explanation of Solution

The raw material available for use in production as under $-$

$R a w m a t e r i a l a v a i l a b l e = B e g i n n i n g R a w m a t e r i a l i n v e n t o r y + R a w m a t e r i a l p u r c h a s e s$

Given,

• Beginning raw material inventory = $ 145,500

• Raw material purchases = $ 532,000

$\begin{array}{l} R a w m a t e r i a l a v a i l a b l e = B e g i n n i n g R a w m a t e r i a l i n v e n t o r y + R a w m a t e r i a l p u r c h a s e s \\ R a w m a t e r i a l a v a i l a b l e = $ 145, 500 + $ 532, 000 \\ R a w m a t e r i a l a v a i l a b l e = $ 677, 500 \end{array}$

The raw material available for use in production = $ 677,500.

Conclusion

Thus, the raw material available for use in production has been calculated.

To determine

Requirement 2

To compute:

Direct materials used in production

Expert Solution

Answer to Problem 16E

Solution:

Direct materials used in production = $ 502,500

Explanation of Solution

The raw material used in production is calculated as under $-$

Given,

• Raw material available for use in production = $ 677,500

• Ending raw material = $ 175,000

$R a w m a t e r i a l used = R a w m a t e r i a l a v a i l a b l e f o r u s e i n p r o d u c t i o n - R a w m a t e r i a l E n d i n g$

$\begin{array}{l} R a w m a t e r i a l us e d = $ 677,500 - $ 175,000 \\ R a w m a t e r i a l u s e d = $ 502,500 \end{array}$

The raw material used in production is $ 502,500

To determine

Requirement 3

To compute:

Total work in process

Expert Solution

Answer to Problem 16E

Solution:

Total work in process = $ 1,687,000

Explanation of Solution

The total work in process is calculated as under $-$

$\begin{array}{l} T o t a l w o r k i n p r o c e s s = \\ D i r e c t m a t e r i a l u s e d \\ + D i r e c t L a b o r \\ + F a c t o r y o v e r h e a d s \\ + B e g i n n i n g w o r k i n p r o c e s s i n v e n t o r y \end{array}$

Given,

• Direct material used = $ 502,500

• Direct Labor = $ 350,000

• Factory overheads = $ 750,000

• Beginning work in process inventory = $ 84,500

$\begin{array}{l} T o t a l w o r k i n p r o c e s s = $ 502,500 + $ 350,000 + $ 750,000 + $ 84,500 \\ T o t a l w o r k i n p r o c e s s = $ 1, 687, 000 \end{array}$

The total work in process is = $ 1,687,000

Conclusion

Thus, the total work in process has been calculated.

To determine

Requirement 4

To compute:

Ending work in process inventory

Expert Solution

Answer to Problem 16E

Solution:

Ending work in process inventory = $ 93,500

Explanation of Solution

The ending work in process inventory is calculated as under $-$

$E n d i n g w o r k i n p r o c e s s i n v e n t o r y = T o t a l w o r k i n p r o c e s s - F i n i s h e d g o o d s m a n u f a c t u r e d$

Given,

• Total work in process = $ 1,687,000

• Finished goods manufactured = $ 1,593,500

$\begin{array}{l} E n d i n g w o r k i n p r o c e s s i n v e n t o r y = T o t a l w o r k i n p r o c e s s - F i n i s h e d g o o d s m a n u f a c t u r e d \\ E n d i n g w o r k i n p r o c e s s i n v e n t o r y = $ 1, 687, 000 - $ 1, 593, 500 \\ E n d i n g w o r k i n p r o c e s s i n v e n t o r y = $ 93, 500 \end{array}$

The ending work in process inventory = $ 93,500.

Conclusion

Thus, the ending work in process inventory has been computed.

To determine

Requirement 5

To compute:

Beginning finished goods inventory

Expert Solution

Answer to Problem 16E

Solution:

Beginning finished goods inventory = $ 146,750

Explanation of Solution

The beginning finished goods inventory is calculated as under $-$

$\begin{array}{l} B e g i n n i n g f i n i s h e d g o o d s i n v e n t o r y = \\ F i n i s h e d g o o d s a v a i l a b l e f o r s a l e \\ - F i n i s h e d g o o d m a n u f a c t u r e d \end{array}$

Given,

• Finished goods available for sale = $ 1,740,250

• Finished goods manufactured = $ 1,593,500

$\begin{array}{l} B e g i n n i n g f i n i s h e d g o o d s i n v e n t o r y = $ 1, 740, 250 - $ 1, 593, 500 \\ B e g i n n i n g f i n i s h e d g o o d s i n v e n t o r y = $ 146, 750 \end{array}$

The beginning finished goods inventory = $ 146,750.

Conclusion

Thus, the beginning finished goods inventory has been computed.

To determine

Requirement 6

To compute:

Finished goods sold

Expert Solution

Answer to Problem 16E

Solution:

Finished goods sold = $ 1,600,300

Explanation of Solution

The finished goods sold will be calculated as under $-$

$F i n i s h e d g o o d s s o l d = F i n i s h e d g o o d s a v a i l a b l e f o r s a l e - E n d i n g f i n i s h e d g o o d s i n v e n t o r y$ Given,

• Finished goods available for sale = $ 1,740,250

• Ending finished goods inventory = $ 139,950

$\begin{array}{l} F i n i s h e d g o o d s s o l d = F i n i s h e d g o o d s a v a i l a b l e f o r s a l e - E n d i n g f i n i s h e d g o o d s i n v e n t o r y \\ F i n i s h e d g o o d s s o l d = $ 1, 740, 250 - $ 139, 950 \\ F i n i s h e d g o o d s s o l d = $ 1, 600, 300 \end{array}$

The finished goods sold = $ 1600,300.

Conclusion

Thus, the finished goods sold has been calculated.

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Answer 3

Question

Chapter 18, Problem 16E

To determine

Concept Introduction:

Schedule of cost of goods manufactured: A schedule of cost of goods manufactured is a schedule explaining the flow of costs from raw material to the result as cost of goods manufactured for a period. The cost of goods manufactured amount if transferred to the finished goods inventory and is used to calculate cost of goods sold on income statement.

Cost of goods sold: The cost of goods sold can be defined as the cost incurred in order to convert a raw material into finished goods. The cost of goods sold includes direct expenses i.e. direct material, direct labor and overheads like - variable manufacturing overheads and fixed manufacturing overhead as well. It is subtracted from the sales to know the gross profit of the business.

Requirement 1

To compute:

Raw material available for use in production

Expert Solution

Answer to Problem 16E

Solution:

Raw material available for use in production = $ 677,500.

Explanation of Solution

The raw material available for use in production as under $-$

$R a w m a t e r i a l a v a i l a b l e = B e g i n n i n g R a w m a t e r i a l i n v e n t o r y + R a w m a t e r i a l p u r c h a s e s$

Given,

• Beginning raw material inventory = $ 145,500

• Raw material purchases = $ 532,000

$\begin{array}{l} R a w m a t e r i a l a v a i l a b l e = B e g i n n i n g R a w m a t e r i a l i n v e n t o r y + R a w m a t e r i a l p u r c h a s e s \\ R a w m a t e r i a l a v a i l a b l e = $ 145, 500 + $ 532, 000 \\ R a w m a t e r i a l a v a i l a b l e = $ 677, 500 \end{array}$

The raw material available for use in production = $ 677,500.

Conclusion

Thus, the raw material available for use in production has been calculated.

To determine

Requirement 2

To compute:

Direct materials used in production

Expert Solution

Answer to Problem 16E

Solution:

Direct materials used in production = $ 502,500

Explanation of Solution

The raw material used in production is calculated as under $-$

Given,

• Raw material available for use in production = $ 677,500

• Ending raw material = $ 175,000

$R a w m a t e r i a l used = R a w m a t e r i a l a v a i l a b l e f o r u s e i n p r o d u c t i o n - R a w m a t e r i a l E n d i n g$

$\begin{array}{l} R a w m a t e r i a l us e d = $ 677,500 - $ 175,000 \\ R a w m a t e r i a l u s e d = $ 502,500 \end{array}$

The raw material used in production is $ 502,500

To determine

Requirement 3

To compute:

Total work in process

Expert Solution

Answer to Problem 16E

Solution:

Total work in process = $ 1,687,000

Explanation of Solution

The total work in process is calculated as under $-$

$\begin{array}{l} T o t a l w o r k i n p r o c e s s = \\ D i r e c t m a t e r i a l u s e d \\ + D i r e c t L a b o r \\ + F a c t o r y o v e r h e a d s \\ + B e g i n n i n g w o r k i n p r o c e s s i n v e n t o r y \end{array}$

Given,

• Direct material used = $ 502,500

• Direct Labor = $ 350,000

• Factory overheads = $ 750,000

• Beginning work in process inventory = $ 84,500

$\begin{array}{l} T o t a l w o r k i n p r o c e s s = $ 502,500 + $ 350,000 + $ 750,000 + $ 84,500 \\ T o t a l w o r k i n p r o c e s s = $ 1, 687, 000 \end{array}$

The total work in process is = $ 1,687,000

Conclusion

Thus, the total work in process has been calculated.

To determine

Requirement 4

To compute:

Ending work in process inventory

Expert Solution

Answer to Problem 16E

Solution:

Ending work in process inventory = $ 93,500

Explanation of Solution

The ending work in process inventory is calculated as under $-$

$E n d i n g w o r k i n p r o c e s s i n v e n t o r y = T o t a l w o r k i n p r o c e s s - F i n i s h e d g o o d s m a n u f a c t u r e d$

Given,

• Total work in process = $ 1,687,000

• Finished goods manufactured = $ 1,593,500

$\begin{array}{l} E n d i n g w o r k i n p r o c e s s i n v e n t o r y = T o t a l w o r k i n p r o c e s s - F i n i s h e d g o o d s m a n u f a c t u r e d \\ E n d i n g w o r k i n p r o c e s s i n v e n t o r y = $ 1, 687, 000 - $ 1, 593, 500 \\ E n d i n g w o r k i n p r o c e s s i n v e n t o r y = $ 93, 500 \end{array}$

The ending work in process inventory = $ 93,500.

Conclusion

Thus, the ending work in process inventory has been computed.

To determine

Requirement 5

To compute:

Beginning finished goods inventory

Expert Solution

Answer to Problem 16E

Solution:

Beginning finished goods inventory = $ 146,750

Explanation of Solution

The beginning finished goods inventory is calculated as under $-$

$\begin{array}{l} B e g i n n i n g f i n i s h e d g o o d s i n v e n t o r y = \\ F i n i s h e d g o o d s a v a i l a b l e f o r s a l e \\ - F i n i s h e d g o o d m a n u f a c t u r e d \end{array}$

Given,

• Finished goods available for sale = $ 1,740,250

• Finished goods manufactured = $ 1,593,500

$\begin{array}{l} B e g i n n i n g f i n i s h e d g o o d s i n v e n t o r y = $ 1, 740, 250 - $ 1, 593, 500 \\ B e g i n n i n g f i n i s h e d g o o d s i n v e n t o r y = $ 146, 750 \end{array}$

The beginning finished goods inventory = $ 146,750.

Conclusion

Thus, the beginning finished goods inventory has been computed.

To determine

Requirement 6

To compute:

Finished goods sold

Expert Solution

Answer to Problem 16E

Solution:

Finished goods sold = $ 1,600,300

Explanation of Solution

The finished goods sold will be calculated as under $-$

$F i n i s h e d g o o d s s o l d = F i n i s h e d g o o d s a v a i l a b l e f o r s a l e - E n d i n g f i n i s h e d g o o d s i n v e n t o r y$ Given,

• Finished goods available for sale = $ 1,740,250

• Ending finished goods inventory = $ 139,950

$\begin{array}{l} F i n i s h e d g o o d s s o l d = F i n i s h e d g o o d s a v a i l a b l e f o r s a l e - E n d i n g f i n i s h e d g o o d s i n v e n t o r y \\ F i n i s h e d g o o d s s o l d = $ 1, 740, 250 - $ 139, 950 \\ F i n i s h e d g o o d s s o l d = $ 1, 600, 300 \end{array}$

The finished goods sold = $ 1600,300.

Conclusion

Thus, the finished goods sold has been calculated.

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Answer 4

Question

Chapter 18, Problem 16E

To determine

Concept Introduction:

Schedule of cost of goods manufactured: A schedule of cost of goods manufactured is a schedule explaining the flow of costs from raw material to the result as cost of goods manufactured for a period. The cost of goods manufactured amount if transferred to the finished goods inventory and is used to calculate cost of goods sold on income statement.

Cost of goods sold: The cost of goods sold can be defined as the cost incurred in order to convert a raw material into finished goods. The cost of goods sold includes direct expenses i.e. direct material, direct labor and overheads like - variable manufacturing overheads and fixed manufacturing overhead as well. It is subtracted from the sales to know the gross profit of the business.

Requirement 1

To compute:

Raw material available for use in production

Expert Solution

Answer to Problem 16E

Solution:

Raw material available for use in production = $ 677,500.

Explanation of Solution

The raw material available for use in production as under $-$

$R a w m a t e r i a l a v a i l a b l e = B e g i n n i n g R a w m a t e r i a l i n v e n t o r y + R a w m a t e r i a l p u r c h a s e s$

Given,

• Beginning raw material inventory = $ 145,500

• Raw material purchases = $ 532,000

$\begin{array}{l} R a w m a t e r i a l a v a i l a b l e = B e g i n n i n g R a w m a t e r i a l i n v e n t o r y + R a w m a t e r i a l p u r c h a s e s \\ R a w m a t e r i a l a v a i l a b l e = $ 145, 500 + $ 532, 000 \\ R a w m a t e r i a l a v a i l a b l e = $ 677, 500 \end{array}$

The raw material available for use in production = $ 677,500.

Conclusion

Thus, the raw material available for use in production has been calculated.

To determine

Requirement 2

To compute:

Direct materials used in production

Expert Solution

Answer to Problem 16E

Solution:

Direct materials used in production = $ 502,500

Explanation of Solution

The raw material used in production is calculated as under $-$

Given,

• Raw material available for use in production = $ 677,500

• Ending raw material = $ 175,000

$R a w m a t e r i a l used = R a w m a t e r i a l a v a i l a b l e f o r u s e i n p r o d u c t i o n - R a w m a t e r i a l E n d i n g$

$\begin{array}{l} R a w m a t e r i a l us e d = $ 677,500 - $ 175,000 \\ R a w m a t e r i a l u s e d = $ 502,500 \end{array}$

The raw material used in production is $ 502,500

To determine

Requirement 3

To compute:

Total work in process

Expert Solution

Answer to Problem 16E

Solution:

Total work in process = $ 1,687,000

Explanation of Solution

The total work in process is calculated as under $-$

$\begin{array}{l} T o t a l w o r k i n p r o c e s s = \\ D i r e c t m a t e r i a l u s e d \\ + D i r e c t L a b o r \\ + F a c t o r y o v e r h e a d s \\ + B e g i n n i n g w o r k i n p r o c e s s i n v e n t o r y \end{array}$

Given,

• Direct material used = $ 502,500

• Direct Labor = $ 350,000

• Factory overheads = $ 750,000

• Beginning work in process inventory = $ 84,500

$\begin{array}{l} T o t a l w o r k i n p r o c e s s = $ 502,500 + $ 350,000 + $ 750,000 + $ 84,500 \\ T o t a l w o r k i n p r o c e s s = $ 1, 687, 000 \end{array}$

The total work in process is = $ 1,687,000

Conclusion

Thus, the total work in process has been calculated.

To determine

Requirement 4

To compute:

Ending work in process inventory

Expert Solution

Answer to Problem 16E

Solution:

Ending work in process inventory = $ 93,500

Explanation of Solution

The ending work in process inventory is calculated as under $-$

$E n d i n g w o r k i n p r o c e s s i n v e n t o r y = T o t a l w o r k i n p r o c e s s - F i n i s h e d g o o d s m a n u f a c t u r e d$

Given,

• Total work in process = $ 1,687,000

• Finished goods manufactured = $ 1,593,500

$\begin{array}{l} E n d i n g w o r k i n p r o c e s s i n v e n t o r y = T o t a l w o r k i n p r o c e s s - F i n i s h e d g o o d s m a n u f a c t u r e d \\ E n d i n g w o r k i n p r o c e s s i n v e n t o r y = $ 1, 687, 000 - $ 1, 593, 500 \\ E n d i n g w o r k i n p r o c e s s i n v e n t o r y = $ 93, 500 \end{array}$

The ending work in process inventory = $ 93,500.

Conclusion

Thus, the ending work in process inventory has been computed.

To determine

Requirement 5

To compute:

Beginning finished goods inventory

Expert Solution

Answer to Problem 16E

Solution:

Beginning finished goods inventory = $ 146,750

Explanation of Solution

The beginning finished goods inventory is calculated as under $-$

$\begin{array}{l} B e g i n n i n g f i n i s h e d g o o d s i n v e n t o r y = \\ F i n i s h e d g o o d s a v a i l a b l e f o r s a l e \\ - F i n i s h e d g o o d m a n u f a c t u r e d \end{array}$

Given,

• Finished goods available for sale = $ 1,740,250

• Finished goods manufactured = $ 1,593,500

$\begin{array}{l} B e g i n n i n g f i n i s h e d g o o d s i n v e n t o r y = $ 1, 740, 250 - $ 1, 593, 500 \\ B e g i n n i n g f i n i s h e d g o o d s i n v e n t o r y = $ 146, 750 \end{array}$

The beginning finished goods inventory = $ 146,750.

Conclusion

Thus, the beginning finished goods inventory has been computed.

To determine

Requirement 6

To compute:

Finished goods sold

Expert Solution

Answer to Problem 16E

Solution:

Finished goods sold = $ 1,600,300

Explanation of Solution

The finished goods sold will be calculated as under $-$

$F i n i s h e d g o o d s s o l d = F i n i s h e d g o o d s a v a i l a b l e f o r s a l e - E n d i n g f i n i s h e d g o o d s i n v e n t o r y$ Given,

• Finished goods available for sale = $ 1,740,250

• Ending finished goods inventory = $ 139,950

$\begin{array}{l} F i n i s h e d g o o d s s o l d = F i n i s h e d g o o d s a v a i l a b l e f o r s a l e - E n d i n g f i n i s h e d g o o d s i n v e n t o r y \\ F i n i s h e d g o o d s s o l d = $ 1, 740, 250 - $ 139, 950 \\ F i n i s h e d g o o d s s o l d = $ 1, 600, 300 \end{array}$

The finished goods sold = $ 1600,300.

Conclusion

Thus, the finished goods sold has been calculated.

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Answer 5

Chapter 18, Problem 16E

To determine

Concept Introduction:

Schedule of cost of goods manufactured: A schedule of cost of goods manufactured is a schedule explaining the flow of costs from raw material to the result as cost of goods manufactured for a period. The cost of goods manufactured amount if transferred to the finished goods inventory and is used to calculate cost of goods sold on income statement.

Cost of goods sold: The cost of goods sold can be defined as the cost incurred in order to convert a raw material into finished goods. The cost of goods sold includes direct expenses i.e. direct material, direct labor and overheads like - variable manufacturing overheads and fixed manufacturing overhead as well. It is subtracted from the sales to know the gross profit of the business.

Requirement 1

To compute:

Raw material available for use in production

Expert Solution

Answer to Problem 16E

Solution:

Raw material available for use in production = $ 677,500.

Explanation of Solution

The raw material available for use in production as under $-$

$R a w m a t e r i a l a v a i l a b l e = B e g i n n i n g R a w m a t e r i a l i n v e n t o r y + R a w m a t e r i a l p u r c h a s e s$

Given,

• Beginning raw material inventory = $ 145,500

• Raw material purchases = $ 532,000

$\begin{array}{l} R a w m a t e r i a l a v a i l a b l e = B e g i n n i n g R a w m a t e r i a l i n v e n t o r y + R a w m a t e r i a l p u r c h a s e s \\ R a w m a t e r i a l a v a i l a b l e = $ 145, 500 + $ 532, 000 \\ R a w m a t e r i a l a v a i l a b l e = $ 677, 500 \end{array}$

The raw material available for use in production = $ 677,500.

Conclusion

Thus, the raw material available for use in production has been calculated.

To determine

Requirement 2

To compute:

Direct materials used in production

Expert Solution

Answer to Problem 16E

Solution:

Direct materials used in production = $ 502,500

Explanation of Solution

The raw material used in production is calculated as under $-$

Given,

• Raw material available for use in production = $ 677,500

• Ending raw material = $ 175,000

$R a w m a t e r i a l used = R a w m a t e r i a l a v a i l a b l e f o r u s e i n p r o d u c t i o n - R a w m a t e r i a l E n d i n g$

$\begin{array}{l} R a w m a t e r i a l us e d = $ 677,500 - $ 175,000 \\ R a w m a t e r i a l u s e d = $ 502,500 \end{array}$

The raw material used in production is $ 502,500

To determine

Requirement 3

To compute:

Total work in process

Expert Solution

Answer to Problem 16E

Solution:

Total work in process = $ 1,687,000

Explanation of Solution

The total work in process is calculated as under $-$

$\begin{array}{l} T o t a l w o r k i n p r o c e s s = \\ D i r e c t m a t e r i a l u s e d \\ + D i r e c t L a b o r \\ + F a c t o r y o v e r h e a d s \\ + B e g i n n i n g w o r k i n p r o c e s s i n v e n t o r y \end{array}$

Given,

• Direct material used = $ 502,500

• Direct Labor = $ 350,000

• Factory overheads = $ 750,000

• Beginning work in process inventory = $ 84,500

$\begin{array}{l} T o t a l w o r k i n p r o c e s s = $ 502,500 + $ 350,000 + $ 750,000 + $ 84,500 \\ T o t a l w o r k i n p r o c e s s = $ 1, 687, 000 \end{array}$

The total work in process is = $ 1,687,000

Conclusion

Thus, the total work in process has been calculated.

To determine

Requirement 4

To compute:

Ending work in process inventory

Expert Solution

Answer to Problem 16E

Solution:

Ending work in process inventory = $ 93,500

Explanation of Solution

The ending work in process inventory is calculated as under $-$

$E n d i n g w o r k i n p r o c e s s i n v e n t o r y = T o t a l w o r k i n p r o c e s s - F i n i s h e d g o o d s m a n u f a c t u r e d$

Given,

• Total work in process = $ 1,687,000

• Finished goods manufactured = $ 1,593,500

$\begin{array}{l} E n d i n g w o r k i n p r o c e s s i n v e n t o r y = T o t a l w o r k i n p r o c e s s - F i n i s h e d g o o d s m a n u f a c t u r e d \\ E n d i n g w o r k i n p r o c e s s i n v e n t o r y = $ 1, 687, 000 - $ 1, 593, 500 \\ E n d i n g w o r k i n p r o c e s s i n v e n t o r y = $ 93, 500 \end{array}$

The ending work in process inventory = $ 93,500.

Conclusion

Thus, the ending work in process inventory has been computed.

To determine

Requirement 5

To compute:

Beginning finished goods inventory

Expert Solution

Answer to Problem 16E

Solution:

Beginning finished goods inventory = $ 146,750

Explanation of Solution

The beginning finished goods inventory is calculated as under $-$

$\begin{array}{l} B e g i n n i n g f i n i s h e d g o o d s i n v e n t o r y = \\ F i n i s h e d g o o d s a v a i l a b l e f o r s a l e \\ - F i n i s h e d g o o d m a n u f a c t u r e d \end{array}$

Given,

• Finished goods available for sale = $ 1,740,250

• Finished goods manufactured = $ 1,593,500

$\begin{array}{l} B e g i n n i n g f i n i s h e d g o o d s i n v e n t o r y = $ 1, 740, 250 - $ 1, 593, 500 \\ B e g i n n i n g f i n i s h e d g o o d s i n v e n t o r y = $ 146, 750 \end{array}$

The beginning finished goods inventory = $ 146,750.

Conclusion

Thus, the beginning finished goods inventory has been computed.

To determine

Requirement 6

To compute:

Finished goods sold

Expert Solution

Answer to Problem 16E

Solution:

Finished goods sold = $ 1,600,300

Explanation of Solution

The finished goods sold will be calculated as under $-$

$F i n i s h e d g o o d s s o l d = F i n i s h e d g o o d s a v a i l a b l e f o r s a l e - E n d i n g f i n i s h e d g o o d s i n v e n t o r y$ Given,

• Finished goods available for sale = $ 1,740,250

• Ending finished goods inventory = $ 139,950

$\begin{array}{l} F i n i s h e d g o o d s s o l d = F i n i s h e d g o o d s a v a i l a b l e f o r s a l e - E n d i n g f i n i s h e d g o o d s i n v e n t o r y \\ F i n i s h e d g o o d s s o l d = $ 1, 740, 250 - $ 139, 950 \\ F i n i s h e d g o o d s s o l d = $ 1, 600, 300 \end{array}$

The finished goods sold = $ 1600,300.

Conclusion

Thus, the finished goods sold has been calculated.

Answer 6

Chapter 18, Problem 16E

To determine

Concept Introduction:

Schedule of cost of goods manufactured: A schedule of cost of goods manufactured is a schedule explaining the flow of costs from raw material to the result as cost of goods manufactured for a period. The cost of goods manufactured amount if transferred to the finished goods inventory and is used to calculate cost of goods sold on income statement.

Cost of goods sold: The cost of goods sold can be defined as the cost incurred in order to convert a raw material into finished goods. The cost of goods sold includes direct expenses i.e. direct material, direct labor and overheads like - variable manufacturing overheads and fixed manufacturing overhead as well. It is subtracted from the sales to know the gross profit of the business.

Requirement 1

To compute:

Raw material available for use in production

Expert Solution

Answer to Problem 16E

Solution:

Raw material available for use in production = $ 677,500.

Explanation of Solution

The raw material available for use in production as under $-$

$R a w m a t e r i a l a v a i l a b l e = B e g i n n i n g R a w m a t e r i a l i n v e n t o r y + R a w m a t e r i a l p u r c h a s e s$

Given,

• Beginning raw material inventory = $ 145,500

• Raw material purchases = $ 532,000

$\begin{array}{l} R a w m a t e r i a l a v a i l a b l e = B e g i n n i n g R a w m a t e r i a l i n v e n t o r y + R a w m a t e r i a l p u r c h a s e s \\ R a w m a t e r i a l a v a i l a b l e = $ 145, 500 + $ 532, 000 \\ R a w m a t e r i a l a v a i l a b l e = $ 677, 500 \end{array}$

The raw material available for use in production = $ 677,500.

Conclusion

Thus, the raw material available for use in production has been calculated.

Answer 7

Chapter 18, Problem 16E

To determine

Concept Introduction:

Schedule of cost of goods manufactured: A schedule of cost of goods manufactured is a schedule explaining the flow of costs from raw material to the result as cost of goods manufactured for a period. The cost of goods manufactured amount if transferred to the finished goods inventory and is used to calculate cost of goods sold on income statement.

Cost of goods sold: The cost of goods sold can be defined as the cost incurred in order to convert a raw material into finished goods. The cost of goods sold includes direct expenses i.e. direct material, direct labor and overheads like - variable manufacturing overheads and fixed manufacturing overhead as well. It is subtracted from the sales to know the gross profit of the business.

Requirement 1

To compute:

Raw material available for use in production

Answer 8

Expert Solution

Answer to Problem 16E

Solution:

Raw material available for use in production = $ 677,500.

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

The raw material available for use in production as under $-$

$R a w m a t e r i a l a v a i l a b l e = B e g i n n i n g R a w m a t e r i a l i n v e n t o r y + R a w m a t e r i a l p u r c h a s e s$

Given,

• Beginning raw material inventory = $ 145,500

• Raw material purchases = $ 532,000

$\begin{array}{l} R a w m a t e r i a l a v a i l a b l e = B e g i n n i n g R a w m a t e r i a l i n v e n t o r y + R a w m a t e r i a l p u r c h a s e s \\ R a w m a t e r i a l a v a i l a b l e = $ 145, 500 + $ 532, 000 \\ R a w m a t e r i a l a v a i l a b l e = $ 677, 500 \end{array}$

The raw material available for use in production = $ 677,500.

Answer 13

Conclusion

Thus, the raw material available for use in production has been calculated.

Answer 14

To determine

Requirement 2

To compute:

Direct materials used in production

Expert Solution

Answer to Problem 16E

Solution:

Direct materials used in production = $ 502,500

Explanation of Solution

The raw material used in production is calculated as under $-$

Given,

• Raw material available for use in production = $ 677,500

• Ending raw material = $ 175,000

$R a w m a t e r i a l used = R a w m a t e r i a l a v a i l a b l e f o r u s e i n p r o d u c t i o n - R a w m a t e r i a l E n d i n g$

$\begin{array}{l} R a w m a t e r i a l us e d = $ 677,500 - $ 175,000 \\ R a w m a t e r i a l u s e d = $ 502,500 \end{array}$

The raw material used in production is $ 502,500

Answer 15

To determine

Requirement 2

To compute:

Direct materials used in production

Answer 16

Expert Solution

Answer to Problem 16E

Solution:

Direct materials used in production = $ 502,500

Answer 17

Expert Solution

Answer 18

Expert Solution

Answer 19

Expert Solution

Answer 20

Explanation of Solution

The raw material used in production is calculated as under $-$

Given,

• Raw material available for use in production = $ 677,500

• Ending raw material = $ 175,000

$R a w m a t e r i a l used = R a w m a t e r i a l a v a i l a b l e f o r u s e i n p r o d u c t i o n - R a w m a t e r i a l E n d i n g$

$\begin{array}{l} R a w m a t e r i a l us e d = $ 677,500 - $ 175,000 \\ R a w m a t e r i a l u s e d = $ 502,500 \end{array}$

The raw material used in production is $ 502,500

Answer 21

To determine

Requirement 3

To compute:

Total work in process

Expert Solution

Answer to Problem 16E

Solution:

Total work in process = $ 1,687,000

Explanation of Solution

The total work in process is calculated as under $-$

$\begin{array}{l} T o t a l w o r k i n p r o c e s s = \\ D i r e c t m a t e r i a l u s e d \\ + D i r e c t L a b o r \\ + F a c t o r y o v e r h e a d s \\ + B e g i n n i n g w o r k i n p r o c e s s i n v e n t o r y \end{array}$

Given,

• Direct material used = $ 502,500

• Direct Labor = $ 350,000

• Factory overheads = $ 750,000

• Beginning work in process inventory = $ 84,500

$\begin{array}{l} T o t a l w o r k i n p r o c e s s = $ 502,500 + $ 350,000 + $ 750,000 + $ 84,500 \\ T o t a l w o r k i n p r o c e s s = $ 1, 687, 000 \end{array}$

The total work in process is = $ 1,687,000

Conclusion

Thus, the total work in process has been calculated.

Answer 22

To determine

Requirement 3

To compute:

Total work in process

Answer 23

Expert Solution

Answer to Problem 16E

Solution:

Total work in process = $ 1,687,000

Answer 24

Expert Solution

Answer 25

Expert Solution

Answer 26

Expert Solution

Answer 27

Explanation of Solution

The total work in process is calculated as under $-$

$\begin{array}{l} T o t a l w o r k i n p r o c e s s = \\ D i r e c t m a t e r i a l u s e d \\ + D i r e c t L a b o r \\ + F a c t o r y o v e r h e a d s \\ + B e g i n n i n g w o r k i n p r o c e s s i n v e n t o r y \end{array}$

Given,

• Direct material used = $ 502,500

• Direct Labor = $ 350,000

• Factory overheads = $ 750,000

• Beginning work in process inventory = $ 84,500

$\begin{array}{l} T o t a l w o r k i n p r o c e s s = $ 502,500 + $ 350,000 + $ 750,000 + $ 84,500 \\ T o t a l w o r k i n p r o c e s s = $ 1, 687, 000 \end{array}$

The total work in process is = $ 1,687,000

Answer 28

Conclusion

Thus, the total work in process has been calculated.

Answer 29

To determine

Requirement 4

To compute:

Ending work in process inventory

Expert Solution

Answer to Problem 16E

Solution:

Ending work in process inventory = $ 93,500

Explanation of Solution

The ending work in process inventory is calculated as under $-$

$E n d i n g w o r k i n p r o c e s s i n v e n t o r y = T o t a l w o r k i n p r o c e s s - F i n i s h e d g o o d s m a n u f a c t u r e d$

Given,

• Total work in process = $ 1,687,000

• Finished goods manufactured = $ 1,593,500

$\begin{array}{l} E n d i n g w o r k i n p r o c e s s i n v e n t o r y = T o t a l w o r k i n p r o c e s s - F i n i s h e d g o o d s m a n u f a c t u r e d \\ E n d i n g w o r k i n p r o c e s s i n v e n t o r y = $ 1, 687, 000 - $ 1, 593, 500 \\ E n d i n g w o r k i n p r o c e s s i n v e n t o r y = $ 93, 500 \end{array}$

The ending work in process inventory = $ 93,500.

Conclusion

Thus, the ending work in process inventory has been computed.

Answer 30

To determine

Requirement 4

To compute:

Ending work in process inventory

Answer 31

Expert Solution

Answer to Problem 16E

Solution:

Ending work in process inventory = $ 93,500

Answer 32

Expert Solution

Answer 33

Expert Solution

Answer 34

Expert Solution

Answer 35

Explanation of Solution

The ending work in process inventory is calculated as under $-$

$E n d i n g w o r k i n p r o c e s s i n v e n t o r y = T o t a l w o r k i n p r o c e s s - F i n i s h e d g o o d s m a n u f a c t u r e d$

Given,

• Total work in process = $ 1,687,000

• Finished goods manufactured = $ 1,593,500

$\begin{array}{l} E n d i n g w o r k i n p r o c e s s i n v e n t o r y = T o t a l w o r k i n p r o c e s s - F i n i s h e d g o o d s m a n u f a c t u r e d \\ E n d i n g w o r k i n p r o c e s s i n v e n t o r y = $ 1, 687, 000 - $ 1, 593, 500 \\ E n d i n g w o r k i n p r o c e s s i n v e n t o r y = $ 93, 500 \end{array}$

The ending work in process inventory = $ 93,500.

Answer 36

Conclusion

Thus, the ending work in process inventory has been computed.

Answer 37

To determine

Requirement 5

To compute:

Beginning finished goods inventory

Expert Solution

Answer to Problem 16E

Solution:

Beginning finished goods inventory = $ 146,750

Explanation of Solution

The beginning finished goods inventory is calculated as under $-$

$\begin{array}{l} B e g i n n i n g f i n i s h e d g o o d s i n v e n t o r y = \\ F i n i s h e d g o o d s a v a i l a b l e f o r s a l e \\ - F i n i s h e d g o o d m a n u f a c t u r e d \end{array}$

Given,

• Finished goods available for sale = $ 1,740,250

• Finished goods manufactured = $ 1,593,500

$\begin{array}{l} B e g i n n i n g f i n i s h e d g o o d s i n v e n t o r y = $ 1, 740, 250 - $ 1, 593, 500 \\ B e g i n n i n g f i n i s h e d g o o d s i n v e n t o r y = $ 146, 750 \end{array}$

The beginning finished goods inventory = $ 146,750.

Conclusion

Thus, the beginning finished goods inventory has been computed.

Answer 38

To determine

Requirement 5

To compute:

Beginning finished goods inventory

Answer 39

Expert Solution

Answer to Problem 16E

Solution:

Beginning finished goods inventory = $ 146,750

Answer 40

Expert Solution

Answer 41

Expert Solution

Answer 42

Expert Solution

Answer 43

Explanation of Solution

The beginning finished goods inventory is calculated as under $-$

$\begin{array}{l} B e g i n n i n g f i n i s h e d g o o d s i n v e n t o r y = \\ F i n i s h e d g o o d s a v a i l a b l e f o r s a l e \\ - F i n i s h e d g o o d m a n u f a c t u r e d \end{array}$

Given,

• Finished goods available for sale = $ 1,740,250

• Finished goods manufactured = $ 1,593,500

$\begin{array}{l} B e g i n n i n g f i n i s h e d g o o d s i n v e n t o r y = $ 1, 740, 250 - $ 1, 593, 500 \\ B e g i n n i n g f i n i s h e d g o o d s i n v e n t o r y = $ 146, 750 \end{array}$

The beginning finished goods inventory = $ 146,750.

Answer 44

Conclusion

Thus, the beginning finished goods inventory has been computed.

Answer 45

To determine

Requirement 6

To compute:

Finished goods sold

Expert Solution

Answer to Problem 16E

Solution:

Finished goods sold = $ 1,600,300

Explanation of Solution

The finished goods sold will be calculated as under $-$

$F i n i s h e d g o o d s s o l d = F i n i s h e d g o o d s a v a i l a b l e f o r s a l e - E n d i n g f i n i s h e d g o o d s i n v e n t o r y$ Given,

• Finished goods available for sale = $ 1,740,250

• Ending finished goods inventory = $ 139,950

$\begin{array}{l} F i n i s h e d g o o d s s o l d = F i n i s h e d g o o d s a v a i l a b l e f o r s a l e - E n d i n g f i n i s h e d g o o d s i n v e n t o r y \\ F i n i s h e d g o o d s s o l d = $ 1, 740, 250 - $ 139, 950 \\ F i n i s h e d g o o d s s o l d = $ 1, 600, 300 \end{array}$

The finished goods sold = $ 1600,300.

Conclusion

Thus, the finished goods sold has been calculated.

Answer 46

To determine

Requirement 6

To compute:

Finished goods sold

Answer 47

Expert Solution

Answer to Problem 16E

Solution:

Finished goods sold = $ 1,600,300

Answer 48

Expert Solution

Answer 49

Expert Solution

Answer 50

Expert Solution

Answer 51

Explanation of Solution

The finished goods sold will be calculated as under $-$

$F i n i s h e d g o o d s s o l d = F i n i s h e d g o o d s a v a i l a b l e f o r s a l e - E n d i n g f i n i s h e d g o o d s i n v e n t o r y$ Given,

• Finished goods available for sale = $ 1,740,250

• Ending finished goods inventory = $ 139,950

$\begin{array}{l} F i n i s h e d g o o d s s o l d = F i n i s h e d g o o d s a v a i l a b l e f o r s a l e - E n d i n g f i n i s h e d g o o d s i n v e n t o r y \\ F i n i s h e d g o o d s s o l d = $ 1, 740, 250 - $ 139, 950 \\ F i n i s h e d g o o d s s o l d = $ 1, 600, 300 \end{array}$

The finished goods sold = $ 1600,300.

Answer 52

Conclusion

Thus, the finished goods sold has been calculated.

Answer 53

Ch. 18 - Prob. 1DQ Ch. 18 - Prob. 2DQ Ch. 18 - Prob. 3DQ Ch. 18 - Prob. 4DQ Ch. 18 - Prob. 5DQ Ch. 18 - Prob. 6DQ Ch. 18 - Prob. 7DQ Ch. 18 - Prob. 8DQ Ch. 18 - Prob. 9DQ Ch. 18 - Prob. 10DQ

Concept explainers

Videos

Answer to Problem 16E

Explanation of Solution

Requirement 2

To compute:

Direct materials used in production

Answer to Problem 16E

Explanation of Solution

Requirement 3

To compute:

Total work in process

Answer to Problem 16E

Explanation of Solution

Requirement 4

To compute:

Ending work in process inventory

Answer to Problem 16E

Explanation of Solution

Requirement 5

To compute:

Beginning finished goods inventory

Answer to Problem 16E

Explanation of Solution

Requirement 6

To compute:

Finished goods sold

Answer to Problem 16E

Explanation of Solution

Want to see more full solutions like this?

Chapter 18 Solutions

Concept explainers

Videos

Answer to Problem 16E

Explanation of Solution

Requirement 2 To compute: Direct materials used in production

Answer to Problem 16E

Explanation of Solution

Requirement 3 To compute: Total work in process

Answer to Problem 16E

Explanation of Solution

Requirement 4 To compute: Ending work in process inventory

Answer to Problem 16E

Explanation of Solution

Requirement 5 To compute: Beginning finished goods inventory

Answer to Problem 16E

Explanation of Solution

Requirement 6 To compute: Finished goods sold

Answer to Problem 16E

Explanation of Solution

Want to see more full solutions like this?

Chapter 18 Solutions

Requirement 2

To compute:

Direct materials used in production

Requirement 3

To compute:

Total work in process

Requirement 4

To compute:

Ending work in process inventory

Requirement 5

To compute:

Beginning finished goods inventory

Requirement 6

To compute:

Finished goods sold