Answer:
<u><em>Adjusted Cost of Goods Sold $ 610,000</em></u>
<em><u>Net Profit $ 160,000</u></em>
<em><u>Ending Inventory Materials $ 20,000</u></em>
<em><u>Ending Inventory Finished Goods $ 55,000</u></em>
<em><u>Ending Inventory Work In Process $ 168,750</u></em>
Explanation:
<u><em>Tyge Corporation</em></u>
<u><em>Cost of Goods Sold Schedule</em></u>
Direct Materials Inventory $ 000000
Purchased materials $300,000
<u><em>Less Ending Inventory $ 20,000</em></u>
Direct materials Used in production $280,000.
Direct labor costs of $220,000,
Applied manufacturing overhead at a rate of $25 per direct labor hour. (Direct labor workers earn $16 per hour). $343,750
(Working 220,000/16*25= 343,750)
Total Manufacturing Costs 843,750
Add Work in Process Beginning Inventory $ 0000
Cost of Goods Available For Manufacture $ 843,750
L<em><u>ess Work In Process Ending Inventory 168,750</u></em>
Cost Of Goods Manufactured $ 675,000
Add Finished Goods Opening Inventory $0000
Cost of Goods Available for Sale $ 675,000
<em><u>Less Finished Goods Ending Inventory $55,000</u></em>
Cost of Goods Sold $620,000
LEss Over applied overhead 10,000
Adjusted Cost of Goods Sold $ 610,000
<em>Tyge Corporation</em>
<em>Income Statement </em>
Sales $900,000
Less Adjusted <em>Cost of Goods Sold </em>$ 610,000
Gross Profit $ 290,000
Less selling and administrative Costs $130,000
<u>Net Profit $ 160,000</u>
<u>Part B: </u>It is assumed that the beginning inventories of Direct Materials , Work in Process and Finished Goods are zero.
So adding the given balances and subtracting we get the ending Inventories .
Materials Purchased $300,00
Materials used $ 280,000
<em><u>Ending Inventory Materials $ 20,000</u></em>
<em />
Finished Goods Transferred 675,000
Cost of Goods Sold 620,000
<em><u>Ending Inventory Finished Goods $ 55,000</u></em>
<em />
Total Manufacturing Costs 843,750
Cost Of Goods Manufactured $ 675,000
<em><u>Ending Inventory Work In Process $ 168,750</u></em>
