Use the following information for a manufacturer to compute cost of goods manufactured and cost of goods sold:
Use the following information for a manufacturer to compute cost of goods manufactured and cost of goods sold:
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Question
Use the following information for a manufacturer to compute cost of goods manufactured and cost of goods sold:
Data Table
Balances:
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Beginning
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Ending
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---|---|---|
Direct Materials
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$20,000
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$32,000
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Work-in-Process Inventory
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39,000
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37,000
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Finished Goods Inventory
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14,000
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23,000
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Data Table
Other information:
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Purchases of direct materials
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$79,000
|
---|---|
Direct labor
|
80,000
|
Manufacturing overhead
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41,000
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First, compute cost of goods manufactured.
Schedule of Cost of Goods Manufactured
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Direct Materials Used:
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Direct Materials Used
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Total
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Total Manufacturing Costs to Account For
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Cost of Goods Manufactured
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Now compute cost of goods sold.
Cost of Goods Sold
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Cost of Goods Manufactured
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Cost of Goods Available for Sale
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Cost of Goods Sold
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