Question

The following information was gathered from the records of Cooper Molecular Models Inc. for the month ended December 31, 2019.

	Balance December 1, 2019	Balance December 31, 2019
Raw Materials Inventory	$4,800	$3,960
Work In Process Inventory	1,980	1,860
Finished Goods Inventory	9,600	7,590

Direct Labour	$13,925
Accounts Receivable	2,700
Insurance on the factory	460
Depreciation on factory machines	1,600
Sales	53,400
Plant Manager’s salary	5,800
Raw material purchases	9,640
Factory property taxes	960
Cash	3,200

Required:

1. Prepare a schedule of Cost of Goods Manufactured.
2. Calculate Cost of Goods Sold.

Answer 1

(a)-Schedule of Cost of Goods Manufactured

Schedule of Cost of goods manufactured
Work-in-process Inventory - December 1, 2019			1,980
Direct Materials used
Direct Materials - December 1, 2019	4,800
Add: Purchase of Direct Materials	9,640
Materials available for use	14,440
Less: Direct Materials - December 31, 2019	3,960
Direct Materials used		10,480
Add: Direct Labor		13,925
Add: Manufacturing Overhead
Insurance on the factory	460
Depreciation on factory machines	1,600
Plant Manager’s salary	5,800
Factory property taxes	960	8,820
Total Manufacturing cost incurred during the year			33,225
Total Manufacturing cost accounted for			35,205
Less: Work-in-process Inventory - December 31, 2019			1,860
Cost of goods manufactured			33,345

(b)-Cost of Goods Sold

Cost of Goods Sold
Cost of goods manufactured	33,345
Add: Finished Goods Inventory - December 1, 2019	9,600
Less: Finished Goods Inventory - December 31, 2019	7,590
Cost of Goods Sold	35,355