Question

Beck Manufacturing reports the information below for 2017. Raw Materials Inventory Begin. Inv. 10,000 Purchases 45,000 Avail. for use 55,000 DM used 46,500 End. Inv. 8,500 Work in Process Inventory Begin. Inv. 14,000 DM used 46,500 Direct labor 27,500 Overhead 55,000 Avail. for mfg. 143,000 Cost of goods mfg 131,000 End. Inv. 12,000 Finished Goods Inventory Begin. Inv. 16,000 Cost of goods mfg 131,000 Avail. for sale 147,000 Cost of Goods Sold 129,000 End. Inv. 18,000 Required: 1. Prepare the schedule of cost of goods manufactured for the year. 2. Compute cost of goods sold for the year.

Answer 1

Answer:

transferred out (COGM) 131,000

Cost of goods sold:       129,000

Explanation:

DM used     46,500

Direct labor  27,500

Overhead    55,000  

Total:           129,000 cost added for the period

Then, we calcualte the amount transferred-out:

Beginning WIP   14,000

Cost added      129,000

Ending WIP       (12,000)

Trasferred out: 131,000 (cost of goods manufactured)

And finally, the cost of goods sold for the year:

Beginning FG    16,000

Trasferred out   131,000

Ending FG         (18,000)

COGS:              129,000