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2 years ago

Compute the Cost of Goods Manufactured and Cost of Goods Sold for

Business

1 answer:

Katen [24]2 years ago

8 0

Answer: The cost of goods manufactured is $214,100, the cost of goods sold $207,100

Explanation:

The question is not complete, I found the missing part of the question online on http:// www.Chegg .com/homework -help, the missing part is as follows

Beginning. Ending

Raw materials inventory. 20,000. 25,000

Work in process inventory. 43,000. 36,000

Finished goods inventory. 17,000. 24,000

Purchases Direct materials. 70,000

Direct Labour. 80,000

Indirect Labour. 42,000

Insurance on plant. 10,000

Depreciation plant building and equipment. 13,400

Repairs and maintenance plant. 3,700

Marketing Expenses. 82,000

General and Administrative Expenses. 27,500

Here is the solution to the question

Clear Bay Company

Manufacturing Trading, Profit and Loss Account

T Account Format

Dr. Cr

$ $

Raw materials

Beginning inventory. 20,000. Total Manufacturing Cost

Add: Purchases of direct materials 70,000. Transferred to trading Account

214,100

---------------

Raw materials Available for use. 90,000

Less: Ending Raw materials inventory 25,000

------------

Cost of Direct materials used. 65,000

Add:Direct Labour. 80,000

-------------

Prime Cost. 145,000

Factory Overhead

Indirect Labour 42,000

Insurance on plant 10,000

Depreciation plant building and Equipment 13,400

Repairs and Maintenance plant 3,700

--------------

69,100

---------------- --------

Total Manufacturing Cost. 214,100. 214,100

----------------- -----------

Finished good

Beginning Finished good inventory 17,000

Add: Manufacturing Cost 214,100

---------------

Cost of goods Available for sale 231,100

Less: Ending Finished good Inventory 24,000

--------------

Cost of good sold. 207,100

Note : Marketing Expenses, General and Administrative Expenses is not an item in the Trading Account. It is an item in the Profit and Loss Account

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Marigold Corp. reported the following year-end information: beginning work in process inventory, $90000; cost of goods manufactu

Stels [109]

Answer:

=$854,000

Explanation:

The cost of goods sold is the expense incurred by a manufacturing firm when making goods to be sold to customers. It is calculated using the formula.

Cost of goods sold = Beginning Stock plus purchases/ cost of goods manufactured minus ending stock

Marigold Corp:

Beginning stock: $162,000

Ending stock: $174,000

cost of goods manufactured, $866000;

cost of goods sold =

$162,000 + 866,000 -$174,000

=$854,000

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2 years ago

For years, many U.S. corporations made cameras. Today; however, most cameras sold in the United States are imported from Japan a

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Answer:

Comparative advantage

Explanation:

The reason is that Japan has less oportunity cost to manufacture cameras than US, so the Japanese companies has an advantage over US companies to compete not on efficiencies but on the cost of the product. Japanese camera won the US market very easily because the japanese camera costs very less to produce in Japan rather than in US. So the comparative advantage theory explains this trade of cameras in international trade with a better explanation.

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2 years ago

It is sometimes advantageous to hire from within because it ________. is less costly, and helps maintain employee morale elimina

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When you hire from within your company for a promotion or different position, it is often less costly because the employees are already trained in how the organization works. They won't have to spend money on her hirer information and ground level training. It also keeps the employees happy because they are able to see that there is potential for growth and by working hard in their current position they have a way to change positions and receive promotions. </span>

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2 years ago

A U.S. treasury bond (selling at a par value of $1,000) that matures at the end of five years is said to have a coupon rate of 6

pav-90 [236]

Answer:

$1,042.04

Explanation:

to calculate the present value using a continuously compounded interest rate, we can use the following 2 formulas:

1) present value = cash flow / eⁿˣ

e = 2.71828
x = 5% / 2 = 2.5%
n = 10
cash flow = $1,030

present value = $1,030 / 2.71828¹⁰ˣ⁰°⁰²⁵ = $1,030 / 1.284 = $802.16

2) present value of an annuity = payment [(1 - e⁻ⁿˣ) / (eˣ - 1)]

payment = $30
x = 2.5%
n = 9
e = 2.71828

present value = $30 [(1 - 2.71828⁻⁹ˣ⁰°⁰²⁵) / (2.71828⁰°⁰²⁵ - 1)] = $30 [(1 - 2.71828⁻⁹ˣ⁰°⁰²⁵) / (2.71828⁰°⁰²⁵ - 1)] = $30(0.2015 / 0.0252) = $239.88

present value of the stream of cash flows = $802.16 + $239.88 = $1,042.04

7 0

2 years ago

The law firm of Furlan and Benson accumulates costs associated with individual cases, using a job order cost system. The followi

Mazyrski [523]

Answer:

3-Jul

Dr Work in process 25,500

Cr Salaries payable 25,500

10-Jul

Dr Work in process 12,500

Cr Cash 12,500

14-Jul

Dr Work in process 48,100

Cr Salaries payable 48,100

18-Jul

Dr Work in process 30,000

Cr Consultant fees payable 30,000

27-Jul

Dr Work in process 26,660

Cr Office overhead 26,660

31-Jul

Dr Office overhead 28,500

Cr Cash 28,500

31-Jul

Dr office overhead 4,000

Cr Supplies 4,000

31-Jul

Dr Salaries payable 74,350

Cr Cash 74,350

31-Jul

Dr Accounts receivable 172,500

Cr Fees earned 172,500

31-Jul

Dr Cost of services 142,760

Cr Work in process 142,760

b. $5,840 Over applied

c. Gross profit $35,580

Explanation:

Furlar and Benson General Journal

3-Jul

Dr Work in process 25,500

(170 hours ×150 per hour)

Cr Salaries payable 25,500

10-Jul

Dr Work in process 12,500

Cr Cash 12,500

14-Jul

Dr Work in process 48,100

(260 hours ×185 per hour)

Cr Salaries payable 48,100

18-Jul

Dr Work in process 30,000

Cr Consultant fees payable 30,000

27-Jul

Dr Work in process 26,660

(170 hours +260 hours)*62

Cr Office overhead 26,660

31-Jul

Dr Office overhead 28,500

Cr Cash 28,500

31-Jul

Dr office overhead 4,000

Cr Supplies 4,000

31-Jul

Dr Salaries payable 74,350

Cr Cash 74,350

31-Jul

Dr Accounts receivable 172,500

Cr Fees earned 172,500

31-Jul

Dr Cost of services 142,760

(25,500+12,500+48,100+30,000+26,660)

Cr Work in process 142,760

b. Calculation for how much office overhead isover- or underapplied

(28,500+4,000)-26,660

=32,500-26,660

=$5,840

Therefore the office overhead is over applied with $5,840

C. Calculation to Determine the gross profit on the Obsidian case

Fees earned 172,500

Less Cost of services (136,920)

(142,760-5,840)

Gross profit $35,580

Therefore the gross profit on the Obsidian case, assuming that over- or underapplied office overhead is closed monthly to cost of services will be $35,580

5 0

2 years ago