Various cost and sales data for Meriwell Company for the just completed year app

Question

Various cost and sales data for Meriwell Company for the just completed year appear in the worksheet below:


Finished goods inventory, beginning $20,000
Finished goods inventory, ending $41,800
Administrative expenses $108,800
Manufacturing overhead $103,400
Purchases of raw materials $125,800
Raw materials inventory, beginning $9,090
Raw materials inventory, ending $5,830
Direct labor $70,700
Work in process inventory, beginning $16,600
Work in process inventory, ending $30,600
Sales $505,000
Selling expenses $79,600

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Of the $103,400 of manufacturing overhead, $13,200 is variable and $90,200 is fixed.

Explanation / Answer

COST SHEET

COST SHEET

Opening Raw materials 9090 Add: Purchase of Raw Materials 125800 134890 Less: Closing Raw Materials 5830 Cost of Direct Materials Consumed 129060 Add: Direct Labour 70700 PRIME COST 199760 Add: Factory Overheads: Variable Manufacturing Overheads 13200 Fixed Manufacturing Overheads 90200 Add: opening stock of work in process 16600 120000 Less: Closing stock of work in process 30600 89400 FACTORY COST: 289160 Add: Office & Administrative Overheads: Administative Expenses 108800 Add: Opening finished goods 20000 128800 Less: Closing finished goods 41800 87000 COST OF GOODS SOLD 376160 Add: Selling and distribution overheads: Selling Expenses 79600 TOTAL COST OF SALES $455,760 PROFIT OF SALES $49,240 SALES $505,000

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