Question

Exercise 01-15 Schedule of cost of goods manufactured and cost of goods sold LO P1, P2

Beck Manufacturing reports the following information in T-account form for 2019.

Raw Materials Inventory
Begin. Inv.	10,800
Purchases	56,500
Avail. for use	67,300
		DM used	52,500
End. Inv.	14,800

Work in Process Inventory
Begin. Inv.	15,600
DM used	52,500
Direct labor	32,300
Overhead	63,000
Manuf. costs	163,400
		Cost of goods manuf.	150,300
End. Inv.	13,100

Finished Goods Inventory
Begin. Inv.	17,500
Cost of goods manuf.	150,300
Avail. for sale	167,800
		Cost of Goods Sold	149,000
End. Inv.	18,800

Required:
1. Prepare the schedule of cost of goods manufactured for the year.
2. Compute cost of goods sold for the year.

Answer 1

1) prepare schedule of cost of goods manufactured

Direct material	$52500
Direct labour	$32300
Manufacturing OVERHEAD	$63000
Total manufacturing cost	$147800
Beginning work in process	$15600
Total cost of work in process	$163400
(-) ending work in process	($13100)
Cost of goods manufactured	$150300

2) compute cost of goods sold

Beginning finished goods	$17500
+Cost of goods manufactured	$150300
Cost of goods available for sale	$167800
(-) ending finished goods	($18800)
Cost of goods sold	$149000

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