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Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

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BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Cost of goods manufactured for a manufacturing company

Two items are omitted from each of the following three lists of cost of goods manufactured statement data. Determine the amounts of the missing items, identifying them by letter.

Work in process inventory, August 1 $19,660 $ 41,650 (e)
Total manufacturing costs incurred during August 332,750 (c) 1,075,000
Total manufacturing costs (a) $ 515,770 51,240,000
Work in process inventory, August 31 23,500 54,000 (f)
Cost of goods manufactured (b) (d) $ 1,068,000

To determine

Cost of goods manufactured:

Cost of goods manufactured refers to the cost incurred for making a product that is available for sales at the end of the accounting period.

The amount of missing items in the statement of cost of goods manufactured.

Explanation

The cost of goods manufactured is determined as follows:

Particulars$$$
Work in progress inventory, August 119,66041,650(e) 165,000
Total manufacturing costs incurred during August332,750(c)                   474,1201,075,000
Total manufacturing costs(a) 352,410515,7701,240,000
Less: work in process inventory, March 3123,50054,000(f) 172,000
Cost of goods manufactured(b) 328,910(d) 461,7701,068,000

Table (1)

Working notes:

  1. 1. For (a), the amount is determined as follows:

Totalmanufacturing[Total manufacturing costs incurred duringaugust+work in progress August 1]=$332,750+$19,660=$352,410 (a)

  1. 2. For (b), the amount is determined as follows:

    Cost of goods manufactured[Total manufacturing costsWork in progress August 31]=$352,410$23,500=$328,910 (b)

  2. 3. For (c), the amount is determined as follows:

Total manufacturing costsincurred during August}[Total manufacturingWork in progress August 1]=$515,770$41,650=$474,120 (c)

  1. 4

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