The following data was taken from the general ledger and other records of XYZ Ma
ID: 2567805 • Letter: T
Question
The following data was taken from the general ledger and other records of XYZ Manufacturing Co. at July 31, the end of the first month of operations in the current fiscal year:
Sales
$50,000
Materials inventory (July 1)
15,000
Work in process inventory (July 1)
20,000
Finished goods inventory (July 1)
28,000
Materials purchased
21,000
Direct labor cost
12,500
Factory overhead (including $5,000 of indirect materials used and $2,500 of indirect labor cost)
11,500
Selling and administrative expense
8,000
Inventories at July 31:
Materials
16,000
Work in process
18,000
Finished goods
30,000
a.
Prepare a statement of cost of goods manufactured.
b.
Determine the cost of goods sold for the month.
Sales
$50,000
Materials inventory (July 1)
15,000
Work in process inventory (July 1)
20,000
Finished goods inventory (July 1)
28,000
Materials purchased
21,000
Direct labor cost
12,500
Factory overhead (including $5,000 of indirect materials used and $2,500 of indirect labor cost)
11,500
Selling and administrative expense
8,000
Inventories at July 31:
Materials
16,000
Work in process
18,000
Finished goods
30,000
Explanation / Answer
a.
b. Cost of goods sold for the month = $44,000
Statement of cost of goods manufactured Inventory of materials on July 1 A 15000 Purchase of materials B 21000 Materials available for production (A + B ) C 36000 Inventory of materials on July 31 D 16000 Material used for production (C - D ) E 20000 Direct labor cost F 12500 Factory overhead Indrect material G 5000 Indirect labor H 2500 Other overheads I 4000 Total factory overhead (G + H + I ) J 11500 Total cost of production (E + F + J ) K 44000 Add: Work in process on July 1 L 20000 64000 Less: Work in process on July 31 18000 Cost of goods manufactured M 46000Related Questions
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