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
