Question

Beck Manufacturing reports the following information in T-account form for 2019.

Raw Materials Inventory
Begin. Inv.	10,900
Purchases	48,000
Avail. for use	58,900
		DM used	47,000
End. Inv.	11,900

Work in Process Inventory
Begin. Inv.	17,400
DM used	47,000
Direct labor	33,300
Overhead	64,000
Manuf. costs	161,700
		Cost of goods manuf.	147,800
End. Inv.	13,900

Finished Goods Inventory
Begin. Inv.	18,100
Cost of goods manuf.	147,800
Avail. for sale	165,900
		Cost of Goods Sold	147,200
End. Inv.	18,700

Required:
1. Prepare the schedule of cost of goods manufactured for the year.
2. Compute cost of goods sold for the year.

Answer 1

Schedules of cost of goods manufactured
	Amount $
Direct Materials:
Beginning materials Inventory	$         10,900
Add: Purchase of raw materials	$         48,000
Total raw materials available	$         58,900
Less: Ending materials Inventory	$       -11,900
Total Material used in production	$         47,000
Direct Material used	$         47,000
Direct Labour	$         33,300
Manufacturing overhead applied	$         64,000
Total Manufacturing costs	$      1,44,300
Add: Beginning WIP	$         17,400
Total cost of WIP	$      1,61,700
Less: Ending WIP	$       -13,900
Costs of goods manufactured	$      1,47,800
Schedules of cost of goods sold
	Amount
Beginning Finished goods	$         18,100
Add: Costs of goods manufactured	$      1,47,800
Costs of goods available	$      1,65,900
Less: Ending Finished goods inventory	$       -18,700
cost of goods sold	$      1,47,200