Question

The following balances are from the accounts of Tappan Parts:

	January 1 (Beginning)			December 31 (Ending)
Direct materials inventory	$	21,600		$	24,800
Work-in-process inventory		32,300			29,000
Finished goods inventory		5,800			7,000

Direct materials used during the year amount to $46,400 and the cost of goods sold for the year was $53,500.

Required:

Prepare a cost of goods sold statement.

Answer 1

Cost of goods manufactured:
Ending inventory of FG		7000
Add: Cost of goods sold		53500
Total cost of FG available for sale	60500
Less: Beginning inventory of FG		5800
Cost of goods manufactured:		54700
Statement of Cost of goods sold:
Beginning inventory of FG		5800
Add: Cost of goods manufactured	54700
Total cost of goods available for sale	60500
Less: Ending inventory of FG		7000
Cost of goods sold			53500

answered by: anonymous