Answer:
Part a
Direct Materials Schedule
Beginning Materials $ 8,000
<em>Add</em> Purchases $83,000
<em>Less</em> Ending Materials ($ 7,000)
<em>Less</em> Indirect materials ($4,000)
Direct Materials Used in Production $80,000
Part b
Overheads Incurred during the year
$
Factory rent 8,000
Factory utilities 10,000
Indirect materials 4,000
Indirect labor 6,000
Total Overheads $28,000
Part c
Cost of Goods Manufactured Schedule
Direct Materials $80,000
Direct labor $42,000
Overheads $28,000
Add Opening Work In Process $15,000
Less Closing Work In Process ($13,000)
Cost of Goods Manufactured $152,000
Part d
Cost of Goods Sold
Beginning Finished goods Inventory $16,000
Add Cost of Goods Manufactured $152,000
Less Ending Finished Goods Inventory ($12,000)
Cost of Goods Sold $156,000
Explanation:
The following steps must be done to reach the cost of goods sold :
- Use the Manufacturing Cost Schedule to calculate the Cost of Goods Manufactured
- Use the Finished Goods Inventory Account to calculate the Cost of Goods Sold.
See the calculations and schedules prepared above.
