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The following data refer to Twisto Pretzel Company for the year 20x1.

Work-in-process inventory, 12/31/x0	$	8,000
Selling and administrative salaries		13,600
Insurance on factory and equipment		3,600
Work-in-process inventory, 12/31/x1		8,100
Finished-goods inventory, 12/31/x0		14,000
Cash balance, 12/31/x1		8,000
Indirect material used		4,300
Depreciation on factory equipment		2,100
Raw-material inventory, 12/31/x0		10,200
Property taxes on factory		2,400
Finished-goods inventory, 12/31/x1		15,200
Purchases of raw material in 20x1		39,000
Utilities for factory		6,000
Utilities for sales and administrative offices		2,400
Other selling and administrative expenses		3,800
Indirect-labor cost incurred		29,000
Depreciation on factory building		3,800
Depreciation on cars used by sales personnel		1,200
Direct-labor cost incurred		79,000
Raw-material inventory, 12/31/x1		11,000
Accounts receivable, 12/31/x1		4,100
Rental for warehouse space to store raw material		2,900
Rental of space for company president’s office		1,600
Applied manufacturing overhead		58,000
Sales revenue		205,800
Income tax expense		5,100

2. Prepare the company’s schedule of cost of goods sold for 20x1. The company closes overapplied or underapplied overhead into Cost of Goods Sold.

TWISTO PRETZEL COMPANY Schedule of Cost of Goods Sold For the Year Ended December 31, 20X1 Finished-goods inventory, 12/31/x0 $14,000selected answer correct Add: Cost of goods manufacturedselected answer correct 174,900selected answer incorrect Cost of goods available for sale $188,900 Less: Finished-goods inventory, 12/31/x1selected answer correct 15,200selected answer correct Cost of goods sold $173,700 Less: Overapplied overheadselected answer correct 3,600selected answer incorrect Adjusted cost of goods sold $170,100

Answer 1

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