I have the answer what I am looking for are the steps to get to the answer. I am
ID: 2556417 • Letter: I
Question
I have the answer what I am looking for are the steps to get to the answer. I am trying to study for an exam Direct materials $14,000 14,000 9,500 12,900 38,000 Indirect materials Indirect labor Factory depreciation Direct labor Beginning raw materials inventory 2,500 Ending raw materials inventory 5,000 Office supplies expense Work in Process, January I Work in Process, December 31 Finished Goods, January l Finished, December 31 9 1,500 4,000 2,500 5,000 6,000 a. Using the above information, total factory overhead costs would be: b. Prepare Statement of Cost of GoodsManufactured c. Prepare Statement of Cost of Goods SoldExplanation / Answer
(a)Factory Overhead Costs
Factory Overhead Costs = Indirect Materials + Indirect Labour + Factory Depreciation
= 14,000 + 9,500 + 12900
= 36,400
(b)Statement of Cost of Goods Manufactured
Beginning raw Materials inventory 2500
Add : Materials Purchased 14000
Materials available for use 16500
Less : Ending raw Materials inventory 5000
Direct materials consumed 11500
Add : Direct Labour 38000
Add : Factory Overhead 36400
Total manufacturing cost 85900
Add : work in process inventory, January 1 4000
Less : work in process inventory, December 31 (2500)
Cost of goods manufactured 87400
(c) Statement of Cost of Goods Sold
Cost of goods manufactured 87400
Add : Finished goods inventory, January 1 5000
Cost of goods available for sale 92400
Less : Finished goods inventory, December 31 (6000)
Cost of goods sold 86400
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