Question

use info to prepare a COGM statement and a COGS statement for Paradise Marina as of June 30, 20XX.

Not everything listed below will be used – Pick out the relevant information

Inventories

Raw Materials, July 1 31,000

Raw Materials, June 30 25,000

Work in Process, July 1 32,750

Work in Process, June 30 35,550

Finished Goods, July 1 57,950

Finished Goods, June 30 60,000

Administrative Salaries 96,000

Depreciation Expense - Office Equip 25,800

Depreciation Expense - Delivery Vehicle 39,000

Depreciation Expense - Factory Equip 56,500

Sales Discounts 30,000

Factory maintenance 10,500

Advertising Expense 25,350

Direct Labor 270,000

Factory Supplies used 16,000

Income Tax Expense 90,000

Indirect Labor 44,000

Indirect Material 29,000

Factory insurance 14,500

Factory utilities 15,000

Raw Material Purchases 395,000

Rent Expense - Factory 55,000

Rent Expense - Office 25,000

Rent Expense - Selling 26,000

Sales salary Expense 89,500

Sales 1,852,000

Answer 1

Paradise Marina schedule of cost of goods manufactured and cost of goods sold are presented below.

Paradise Marina

Schedule of cost of goods sold

For the Year Ended 30th June , 20XX

Particulars	$	$
Raw material purchases	395,000
Add Raw materials July 1	31,000
Raw materials available for production	426,000
Less Raw material June 30	(25,000)
Raw materials used		401,000
Direct labour		270,000
Prime cost		671,000
Manufacturing overhead:
Factory utilities	15,000
Factory rent expenses	55,000
Factory equipment depreciation expense	56,500
Indirect material	29,000
Factory maintenance	10,500
Indirect labour	44,000
Factory supplies used	16,000
Factory insurance	14,500
Total manufacturing overhead		240,500
Total manufacturing cost		911,500
Add beginning work in process 1st July		32,750
		944,250
Less Ending work in process 30th June		35,550
Cost of goods manufactured		908,700

Paradise Marina

Cost of goods sold

For the Year Ended 30th June , 20XX

Particulars	$
Beginning finished goods inventory 1st July	57,950
Add cost of goods manufactured	908,700
Cost of goods available for sales	966,650
Less Ending work in process inventory 30th June	60,000
Cost of goods sold	906,650

Paradise Marina depreciation expense for delivery vehicle $39,000 is selling expenses and depreciation expense Paradise Marina for office equipment $25,800 is administrative expenses. Advertising expenses $25,350 is a selling expense.

July 1st is the beginning of the period and June 30th is the end of the period.

Income tax expenses $90,000 is a non manufacturing cost, it is also a non operating expense.

$96,000 administrative expenses is a operating expense.

$906,650 is the cost of goods sold and $908,700 is the cost of goods manufactured

Rent expenses related to office $25,000 is a administrative expense and selling $26,000 is a selling expense.