Cost of Goods Sold, Cost of Goods Manufactured. PLEASE EXPLAIN AND BOLD ANSWERS
ID: 2430997 • Letter: C
Question
Cost of Goods Sold, Cost of Goods Manufactured. PLEASE EXPLAIN AND BOLD ANSWERS
Timbuk 3 Company has the following information for March:
a. For March, determine the cost of goods manufactured.
Using the data given, prepare a statement of Cost of Goods Manufactured.
b. For March, determine the cost of goods sold.
Using the data given, prepare a statement of Cost of Goods Sold.
Cost of direct materials used in production $44,000 Direct labor 54,000 Factory overhead 28,000 Work in process inventory, March 1 32,000 Work in process inventory, March 31 31,600 Finished goods inventory, March 1 23,000 Finished goods inventory, March 31 15,000Explanation / Answer
a.statement of cost of goods manufactured.
b.cost of goods sold.
amount amount work in process inventory March 1 32,000 direct materials 44,000 direct labour 54,000 factory overhead 28,000 total manufacturing cost incurred during march (44,000+54,000+28,000) 126,000 total manufacturing cost(126,000 +32,000) 158,000 less:work in process inventory march 31 (31,600) cost of goods manufactured 126,400