Question

Use below information for Questions 1 to 3: For June 30th of 2017, Company X reported raw materials balance of TL20,500 and WIP balance of TL25,000 in its balance sheet. During July;

• Direct labor of TL250,000 was used.

• TL360,000 worth of raw materials was purchased.

• Manufacturing overhead used (exclusive of indirect materials) was equal to 67% of direct labor costs. At the end of July, ending work in process inventory was worth TL59,500. Totol cost of work in process equalled TL790,000. Sales totalled TL1,240,000 and gross profit was 47% of the sales. COGS available for sale equalled TL770,500.

Q-1) Calculate the balance of raw materials inventory as of July 31st.

Q-2) Calculate the COGM in July 31st.

Q-3) Calculate the balance of finished goods inventory as of July 31st. Use below

Answer 1

Calculations

schedule of cost of goods manufactured

Beginning raw materials inventory	20,500
Add: Purchases	360,000
Raw materials available for use	380,500
Less: Ending raw materials inventory	32,500
Direct materials used	347,500

Direct materials	347,500
Direct Labor	250,000
Manufacturing overhead (250,000×67%)	167,500
Total manufacturing costs	765,000

Total manufacturing costs	765,000
Beginning WIP	25,000
Total work in process	790,000
Less:Ending WIP	59,500
Cost of goods manufactured	730,500

Cost of goods manufactured	730,500
Beginning Finished goods Inventory	40,000
Goods available for sale	770,500
Less: Ending Finished goods Inventory	113,300
Cost of goods sold	657,200

Sales	1,240,000
Less: Gross profit (47% of sales)	582,800
Cost of goods sold	657,200

* Cost of goods available for sale- Cost of goods sold = Ending Finished goods Inventory

______×______

All the best

Please do rate

Any further explanation required, comment below