Question

The following balances are from the accounts of Tappan Parts: January 1 (Beginning) December 31 (Ending) Direct materials inventory $ 22,100 $ 25,400 Work-in-process inventory 32,200 29,100 Finished goods inventory 5,400 6,800 Direct materials used during the year amount to $45,500 and the cost of goods sold for the year was $53,400. Required: Prepare a cost of goods sold statement.

Answer 1

Answer:

Raw materials

Opening Inventory               22,100

purchases                           47,800 (69,900 - 22,100)

available for use                  69,900 (45,500 + 25,400)

closing Inventory                (25,400)

cost of raw materials used  45,500

conversion cost                     6,200 (51,700 - 45,500)

(labor and overhead)

cost added                           51,700  (54,800 + 29,100 - 32,200)

WIP opening                       32,200

WIP ending                         (29,100)

COGM                                54,800 (60,200 - 5,400)

B. finished goods                5,400

available                           60,200 (53,400 + 6,800)

E. finished goods              (6,800)

COGS                                53,400

Explanation:

Italic: given value

bold: calculate value