Compute the Cost of Goods Manufactured and Cost of Goods Sold for West Nautical
ID: 2329963 • Letter: C
Question
Compute the Cost of Goods Manufactured and Cost of Goods Sold for West Nautical Company for the most recent year using the amounts described next. Assume that Raw Materials Inventory contains only direct materials. EEB (Click the icon to view the data.) Data Table Less: Cost of goods Now calculate Beginning End of End of Year S 11,000 of Year Year Raw materials inventory Work in process inventory Finished goods inventory Purchases of direct materials.. Direct labor Indirect labor S 22,000 30,000 Insurance on plant 44,000 32,000 Depreciation-plant building and equipment ...12,800 S 18,000 20,000 Repairs and maintenance-plant $ 3,600 S 84,000 S 25,500 $ 78,000 Marketing expenses Plus: 81,000 General and administrative expenses 37,000 Choose from Print DoneExplanation / Answer
Answer
Working #1: Calculation of Manufacturing Overheads
Indirect Labor
$ 37,000.00
Insurance on Plant
$ 11,000.00
Depreciation
$ 12,800.00
Repairs & Maintenance - Plant
$ 3,600.00
Total manufacturing Overheads
$ 64,400.00
Direct Material Used
Beginning Raw material inventory
$ 22,000.00
Plus: Purchase of direct materials
$ 78,000.00
Total direct material available
$ 100,000.00
Less: Ending Raw material inventory
$ 30,000.00
Direct material Used
$ 70,000.00
Cost of Goods Manufactured
Work in Process Beginning Inventory
$ 44,000.00
Plus: Manufacturing Costs incurred-
Direct material Used
$ 70,000.00
Direct Labor
$ 81,000.00
Manufacturing Overheads
$ 64,400.00
Total cost of Work In Process
$ 259,400.00
Less: Work in Process Ending Inventory
$ 32,000.00
Cost of Goods Manufactured
$ 227,400.00
---Marketing & Administrative costs DO NOT FORM part of Cost of Manufacturing.
Calculation of Cost of Goods Sold
Beginning Finished Inventory
$ 18,000.00
Plus: Cost of Goods Manufactured
$ 227,400.00
Cost of Goods available for sale
$ 245,400.00
Less: Ending Finished Inventory
$ 20,000.00
Cost of Goods Sold
$ 225,400.00
Working #1: Calculation of Manufacturing Overheads
Indirect Labor
$ 37,000.00
Insurance on Plant
$ 11,000.00
Depreciation
$ 12,800.00
Repairs & Maintenance - Plant
$ 3,600.00
Total manufacturing Overheads
$ 64,400.00
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