Please Prepare a Statement of Cost of Goods Sold For Nike Inc. Using the informa
ID: 2380138 • Letter: P
Question
Please Prepare a Statement of Cost of Goods Sold For Nike Inc. Using the information provided below for the Year Ended December 31, 2012.
Raw Materials Purchased $205,000
Office Administrators Salary 62,815
Beginning Raw Materials 30,000
Beginning Work in Process 80,000
Beginning Finished Goods 110,000
Ending raw Materials 20,000
Direct LAbor Cost 350,000
Indirect Labor Cost 90,000
Factory Utilities 65,000
Factory Machinery Rent 40,000
Factory Managers Salary 35,000
Depreciation on Factory Building 24,000
Indirect Materials 15,000
Factory Insurance 14,000
Property Taxes-Factory Building 6,000
Ending Work-In Process 50,000
Ending Finshed Goods 120,000
Depreciation Expense - Administrative Buidling 48,000
CEO Salary 164,800
Office Supplies Expense 4216
Explanation / Answer
Cost of Goods Sold Statement<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
For the year ended Dec. 31, 2012
Raw materials:
Materials Inventory, Jan. 1, 2012: $30,000
Purchases: $205,000
Materials Available for Use: $235,000
Less: Mater. Inv. Dec. 31, 2012 $20,000
Direct Materials Consumed: $215,000
Direct Labor: $350,000
Factory Overheard:
Indirect Labor Cost 90,000
Factory Utilities 65,000
Factory Machinery Rent 40,000
Factory Managers Salary 35,000
Depreciation on Factory Building 24,000
Indirect Materials 15,000
Factory Insurance 14,000
Property Taxes-Factory Building 6,000
Total Factory Overhead: 289,000
Total manufacturing cost: 854,000
Add Beg WIP inventory: 80,000
Total cost to be accounted for: 934,000
Less: end WIP inventory: 50,000
Cost of Goods manufactured: 884,000
Add beg. Finished goods inventory: 110,000
Cost of goods available for sale: 994,000
Less: finished goods ending inventory: 120,000
Cost of goods sold: 874,000