Question

Cost of Goods Sold, Cost of Goods Manufactured Timbuk 3 Company has the following information for March: Cost of direct materials used in production $44,000 Direct labor 52,000 Factory overhead 26,000 Work in process inventory, March 1 30,000 Work in process inventory, March 31 38,000 Finished goods inventory, March 1 29,000 Finished goods inventory, March 31 21,000

a. For March, determine the cost of goods manufactured. Using the data given, prepare a statement of Cost of Goods Manufactured. Timbuk 3 Company Statement of Cost of Goods Manufactured Total manufacturing costs incurred during March Total manufacturing costs Cost of goods manufactured.

b. For March, determine the cost of goods sold. Using the data given, prepare a statement of Cost of Goods Sold. Timbuk 3 Company Statement of Cost of Goods Sold

Answer 1

Solution

Timbuk 3 Company
Schedule of Cost of Goods Manufactured
Direct Material Used		$ 44,000
Direct labor		$ 52,000
Manufacturing Overhead applied		$ 26,000
Total manufacturing Cost During the month		$ 122,000
Add: Work in process Beginning		$ 30,000
Total Work in Process		$ 152,000
Less: Work in progress Ending		$ 38,000
Cost of Goods Manufactured		$ 114,000

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Timbuk 3 Company
Schedule of cost of goods sold
Beginning Finished Goods Inventory		$ 29,000
Add: Cost of goods manufactured		$ 114,000
Goods Available for sale		$ 143,000
Less :Ending Finished goods Inventory		$ 21,000
Cost of Goods Sold		$ 122,000