8. Information for Riley Manufacturing Company is presented below. Compute both
ID: 2544728 • Letter: 8
Question
8.
Information for Riley Manufacturing Company is presented below. Compute both the cost of goods manufactured and the cost of goods sold for the company. Hint: You will need to calculate the cost of raw materials used as raw materials used is a component of total manufacturing costs. Checks: COGM should be a number greater than $223,000 but less than $226,000. COGS should be a number greater than $242,000. (2 points)
Beginning raw materials inventory
$36,800
Beginning work in process inventory
21,200
Direct labor
81,000
Beginning finished goods inventory
64,000
Total factory overhead
125,000
Raw materials purchased
21,000
Ending raw materials inventory
40,000
Ending work in process inventory
20,000
Ending finished goods inventory
45,000
8.
Information for Riley Manufacturing Company is presented below. Compute both the cost of goods manufactured and the cost of goods sold for the company. Hint: You will need to calculate the cost of raw materials used as raw materials used is a component of total manufacturing costs. Checks: COGM should be a number greater than $223,000 but less than $226,000. COGS should be a number greater than $242,000. (2 points)
Beginning raw materials inventory
$36,800
Beginning work in process inventory
21,200
Direct labor
81,000
Beginning finished goods inventory
64,000
Total factory overhead
125,000
Raw materials purchased
21,000
Ending raw materials inventory
40,000
Ending work in process inventory
20,000
Ending finished goods inventory
45,000
Explanation / Answer
a) Cost of goods manufactured :
Raw material used = 36800+21000-40000 = 17800
Total manufacturing cost = 17800+81000+125000 = 223800
Cost of goods manufactured = 21200+223800-20000 = 225000
b) Cost of goods sold = 64000+225000-45000 = 244000
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