Chapter 2, Problem 19E

To determine

Concept introduction:

Cost of goods manufactured and sold statement represents the manufacturing cost of goods. It also shows the outflow from each account during the period.

To calculate:

The missing values.

Answer to Problem 19E

Particulars	$ (case 1)	$ (Case 2)	$ (Case 3)	$ (Case 4)
Beginning Raw Materials	7,000	(e) 9,000	16,000	55,000
Raw material purchased	63,000	24,500	33,312	(o) 140,000
Indirect material issued	1,400	2,000	1,200	1,000
Ending raw material	2,800	4,500	(i) 21,136	46,750
Direct material used	(a) 65,800	27,000	26,976	(n) 147,250
Direct labor	40,600	(f) 43,500	(j) 22,480	61,625
Manufacturing overhead applied	72,800	80,700	24,864	270,865
Total current manufacturing costs	(b) 179,200	151,200	74,320	(m) 479,740
Beginning work in process	57,400	65,200	(k) 30,060	51,260
Ending work in process	(c) 42,000	(g) 56,800	33,000	118,050
Cost of goods manufactured	194,600	159,600	71,380	412,950
Beginning finished goods	100,800	(h) 42,600	41,520	(p) 205,350
Ending finished goods	112,000	60,200	(l) 22,200	198,600
Cost of goods sold	(d) 183,400	142,000	90,700	419,700

Explanation of Solution

(a) Calculation of ‘Direct materials used’:

Particulars	$ (Case 1)
Beginning raw materials	7,000
(+) Raw materials purchased	63,000
(-) Indirect materials issued	(1,400)
(-) Ending raw materials	(2,800)
Direct materials used	65,800

(b) Calculation of ‘Total current manufacturing costs’

Particulars	$ (Case 1)
Direct materials used	65,800
(+) Direct Labor	40,600
(+) Manufacturing overhead applied	72,800
Total current manufacturing costs	179,200

(c) Calculation of ‘Ending work in processes

Particulars	$ (Case 1)
Total current manufacturing costs	179,200
(+) Beginning work in process	57,400
(-) Ending work in process	(42,000)
Cost of goods manufactured	194,600

(d) Calculation of ‘Cost of goods sold’

Particulars	$ (Case 1)
Cost of goods manufactured	194,600
(+) Beginning finished goods	100,800
(-) Ending finished goods	(112,000)
Cost of goods sold	183,400

(e) Calculation of ‘Beginning raw materials’

Particulars	$ (Case 2)
Beginning raw materials	9,000
(+) Raw materials purchased	24,500
(-) Indirect materials issued	(2,000)
(-) Ending raw materials	(4,500)
Direct materials used	27,000

(f) Calculation of ‘Direct labor’

Particulars	$ (Case 2)
Direct materials used	27,000
(+) Direct Labor	43,500
(+) Manufacturing overhead applied	80,700
Total current manufacturing costs	151,200

(g) Calculation of ‘Ending work in process’

Particulars	$ (Case 2)
Total current manufacturing costs	151,200
(+) Beginning work in process	65,200
(-) Ending work in process	(56,800)
Cost of goods manufactured	159,600

(h) Calculation of ‘Beginning finished goods’

Particulars	$ (Case 2)
Cost of goods manufactured	159,600
(+) Beginning finished goods	42,600
(-) Ending finished goods	(60,200)
Cost of goods sold	142,000

(i) Calculation of ‘Ending raw materials’

Particulars	$ (Case 3)
Beginning raw materials	16,000
(+) Raw materials purchased	33,312
(-) Indirect materials issued	(1,200)
(-) Ending raw materials	(21,136)
Direct materials used	26,976

(j) Calculation of ‘Direct Labor’

Particulars	$ (Case 3)
Direct materials used	26,976
(+) Direct Labor	22,480
(+) Manufacturing overhead applied	24,864
Total current manufacturing costs	74,320

(k) Calculation of ‘Beginning work in process’

Particulars	$ (Case 3)
Total current manufacturing costs	74,320
(+) Beginning work in process	30,060
(-) Ending work in process	(33,000)
Cost of goods manufactured	71,380

(l) Calculation of ‘Ending finished goods’

Particulars	$ (Case 2)
Cost of goods manufactured	71,380
(+) Beginning finished goods	41,520
(-) Ending finished goods	(22,200)
Cost of goods sold	90,700

(m) Calculation of ‘Total current manufacturing costs’

Particulars	$ (Case 4)
Total current manufacturing costs	479,740
(+) Beginning work in process	51,260
(-) Ending work in process	(118,050)
Cost of goods manufactured	412,950

(n) Calculation of ‘Direct material used’

Particulars	$ (Case 4)
Direct materials used	147,250
(+) Direct Labor	61,625
(+) Manufacturing overhead applied	270,865
Total current manufacturing costs	479,740

(o) Calculation of ‘Raw material purchases’

Particulars	$ (Case 4)
Beginning raw materials	55,000
(+) Raw materials purchased	140,000
(-) Indirect materials issued	(1,000)
(-) Ending raw materials	(46,750)
Direct materials used	147,250

(p) Calculation of ‘Beginning finished goods’

Particulars	$ (Case 2)
Cost of goods manufactured	412,950
(+) Beginning finished goods	205,350
(-) Ending finished goods	(198,600)
Cost of goods sold	419,700