The following information was taken from the accounting records of Elliott Manuf
ID: 2331719 • Letter: T
Question
The following information was taken from the accounting records of Elliott Manufacturing Corp. Unfortunately, some of the data were destroyed by a computer malfunction.
Sales Revenue $ 58,000
Finished Goods Inv, Beg 9,000
Finished Goods Inv, End 6,000
Cost of Goods Sold ?
Gross Margin 25,000
Direct Materials Used 10,000
Selling & Admin Exp ?
Operating Income 14,000
Work-in-Process Inv, Beg ?
Work-in-Process Inv, End 5,000
Direct Labor Used 9,000
Factory Overhead 12,000
Total Manuf Cost ?
Cost of Goods Manuf ?
Cost of goods manufactured is calculated to be:
$32,000.
$30,000.
$33,000.
$38,000.
$27,000.
Explanation / Answer
Cost of goods sold = 58000-25000 = 33000
Cost of goods manufactured = cost of goods sold - beginning finished goods + ending finished goods
= 33000-9000+6000
Cost of goods manufactured = 30000
So answer is b) $30000
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