18-3b: (CHECK: Cost of Goods manufactured= $1,816,995) Advertising expense ....2
ID: 2542187 • Letter: 1
Question
18-3b:
(CHECK: Cost of Goods manufactured= $1,816,995) Advertising expense ....2 $ 20,250 Miscellaneous production costs 8,440 70,875 8,440 Depreciation expense-Selling equipment .10,125 Office salaries expense Depreciation expense-Factory equipment35.400 23,625 27,000 93,500 30,375 4,942625 295,300 Factory supervision Factory supplies used 121,500 6,060 37,500 Rent expense-Office space . . . . . . . . . . … Rent expense-Selling space . . . . . . . . . . . … Rent expense-Factory building . . . . . . . . . . . . Maintenance expense-Factory equipment.. Indirect labor
Explanation / Answer
1)
2)cost of goods sold :Beginning FG+Cost of goods manufactured -ending FG
= 177200+1816995-141750
= 1852445
Income statement
For the period ended Dec 31,2017
3)
cost of goods sold /AVerage inventory
where average inventory =[(beginning+ending)/2]
864320/[(40375+70430)/2]
864320/55402.5
15.60
1852445/[(177200+141750)/2]
1852445/159475
11.6
365*70430/864320
29.7 days
365*141750/1852445
27.9 days
There is a difference in both ratio as For calculating ratio for Raw material ,Raw material used is used as a measure whereas for calculating ratio for finished goods ,cost of goods sold is used as a measure resulting in difference.
Cost of goods manufactured Beginning Raw material 40375 Raw material purchase 894375 less:Ending raw material (70430) Raw material used 864320 Direct labor 562500 Factory overhead Depreciation expense -Factory 35400 Factory supervision 121500 Factory supplies used 6060 Factory utilities 37500 Indirect labor 59000 Misc.production cost 8440 Rent -Factory 93500 Maintenance expense -Factory equipment 30375 Total overhead 391775 Total manufacturing cost 1818595 Beginning WIP 12500 LESS:ENDING wip (14100) cost of goods manufactured 1816995Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.