Haver Corporation has provided the following data concerning last month\'s opera
ID: 2339833 • Letter: H
Question
Haver Corporation has provided the following data concerning last month's operations. Purchases of raw materials Indirect materials included in manufacturing overhead Direct labor cost Manufacturing overhead applied to Work in Process $ 32,000 $4,000 58,000 84,000 Raw materials inventory Work in process inventory Finished goods inventory Beginning $10,000 $58,000 $32,000 Ending $16,000 $74,000 $49,000 How much is the cost of goods available for sale on the Schedule of Cost of Goods Sold O$180,000 O$148,000 O$131,000 O $134,000 Moving to another question will save this response.Explanation / Answer
Solution:
First of all we need to prepare the Cost of Goods Sold Schedule to find out the Cost of Goods Available for Sale.
Schedule of Cost of Goods Sold
$$
$$
Direct materials:
Raw Materials, beginning inventory
$10,000
Add: Materials purchased
$32,000
Total Raw materials available
$42,000
Deduct: Raw Materials, Ending Inventory
$16,000
Raw materials used in production (Direct)
$26,000
Direct Labor
$58,000
Applied Manufacturing Overhead to work in process (Excluding Indirect materials)
$80,000
Total Manufacturing Costs
$164,000
Plus: Beginning work in process
$58,000
$222,000
Less: Ending Work In Process
$74,000
Cost of Goods Manufactured
$148,000
Add: Beginning Finished Goods Inventory
$32,000
Cost of Goods Available for Sale
$180,000
Less: Ending Finished Goods Inventory
$49,000
Cost of Goods Sold
$131,000
Here, Cost of Goods Available For Sale = $180,000
Hence, the correct option is $180,000
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Schedule of Cost of Goods Sold
$$
$$
Direct materials:
Raw Materials, beginning inventory
$10,000
Add: Materials purchased
$32,000
Total Raw materials available
$42,000
Deduct: Raw Materials, Ending Inventory
$16,000
Raw materials used in production (Direct)
$26,000
Direct Labor
$58,000
Applied Manufacturing Overhead to work in process (Excluding Indirect materials)
$80,000
Total Manufacturing Costs
$164,000
Plus: Beginning work in process
$58,000
$222,000
Less: Ending Work In Process
$74,000
Cost of Goods Manufactured
$148,000
Add: Beginning Finished Goods Inventory
$32,000
Cost of Goods Available for Sale
$180,000
Less: Ending Finished Goods Inventory
$49,000
Cost of Goods Sold
$131,000
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