Understanding the Relationship between Cost Flows, Inventories, and Cost of Goods SoldIvano Company has collected cost accounting information for the following subset of items for Years 1 and 2.Required:Calculate the values of the missing items. Year 1Year 2Item: Direct materials used in production$ ?$50,000Direct materials: Beginning inventory$10,000$?Direct materials purchases45,000$?Direct materials: Ending inventory15,00017,000Direct labor used in production$?53,000Manufacturing overhead costs used in production80,00076,000Work in process: Beginning inventory17,00014,000Work in process: Ending inventory14,00019,000Finished goods: Beginning inventory8,0007,000Finished goods: Ending inventory7,00011,000Cost of goods sold169,000$?

Cost: Cost can be defined as the cash and cash equivalent incurred against the products or its…

Answered: Understanding the Relationship between…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 5E: Prepare a cost of goods sold budget for MacLaren Manufacturing Inc. for the year ended December 31,...

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Understanding the Relationship between Cost Flows, Inventories, and Cost of Goods Sold

Ivano Company has collected cost accounting information for the following subset of items for Years 1 and 2.

Required:

Calculate the values of the missing items.

	Year 1	Year 2
Item:
Direct materials used in production	$ ?	$50,000
Direct materials: Beginning inventory	$10,000	$?
Direct materials purchases	45,000	$?
Direct materials: Ending inventory	15,000	17,000
Direct labor used in production	$?	53,000
Manufacturing overhead costs used in production	80,000	76,000
Work in process: Beginning inventory	17,000	14,000
Work in process: Ending inventory	14,000	19,000
Finished goods: Beginning inventory	8,000	7,000
Finished goods: Ending inventory	7,000	11,000
Cost of goods sold	169,000	$?

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