E2-26A Compute Cost of Goods Manufactured and Cost of Goods Sold (Learning Objec

Question

E2-26A Compute Cost of Goods Manufactured and Cost of Goods Sold (Learning Objective 5) Compute the Cost of Goods Manufactured and Cost of Goods Sold for West Nautica Company for the Raw Materials Inventory contains only direct materials. most recent year using the amounts described next. Assume that the End of Year $ 11,500 Beginning End of Year of Year ry$23,000 $25,000 Raw materials inventory. in process inventory$35,000 $31,000 Depreciation-plant building and equipment..s 13,400 $20,000 $22,000 Repairs and maintenance-plan.. Purchases of direct materials.... Direct labor Indirect labor.... $74,000 $86,000 $42,000 Marketing expenses.. General and administrative expenses... $77,000 $ 28,500 E2-27A Continues E2-26A: Prepare income statement (Learning Objective 5) Prepare the income statement for West Nautical Company in E2-26A for the most recent year. Assume that the company sold 34,000 units of its product at a price of $12 each during the year

Explanation / Answer

Compute cost of goods manufactured:

b) Cost of goods sold = 20000+232600-22000 = 230600

c) Income statement :

Beginning work in process 35000 Begining raw material 23000 Direct material purchase 74000 Less: Ending raw material -25000 Direct material used 72000 Direct labour 86000 Manufacturing overhead Indirect labour 42000 Insurance of plant 11500 Depreciation-Plant building and equipment 13400 Repairs and maintenance-Plant 3700 Total manufacturing overhead 70600 Total manufacturing cost 228600 Total cost of work in process 263600 Less: Ending work in process -31000 Cost of goods manufactured 232600

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.