Question

Can you please show me the work on how you get your answer please (thank you in advance kings and queens of chegg)

Problem 1: The following selected information is provided about a manufacturing company:

Raw material purchases800,000

Direct labor 415,000

Overhead applied730,000

Actual overhead745,000

Selling and administrative salaries500,000

Other selling and administrative expenses185,000

Sales revenue5,000,000

Inventory data: January 1 December 31Raw material 75,000 100,000Work in process 105,000 140,000Finished goods 120,000 125,000Calculate the cost of goods sold. Assume that under/over applied overhead is closed directly to cost of goods sold.

Answer 1

Answer :

Step 1 : calculation of cost of goods manufactured

Particulars		Amount
Direct materials:
Raw material inventory Beginning	75,000
Add: purchase of raw material	8,00,000
Total raw material available	8,75,000
Less: Raw material inventory ending	(1,00,000)
Raw material used in production		7,75,000
Direct labour		4,15,000
Manufacturing overhead		7,30,000
Total manufacturing cost		19,20,000
Add: Beginning work in process inventory		1,05,000
		20,25,000
Less: Ending inventory work in process		(1,40,000)
Cost of goods manufactured		18,85,000

Step 2 : calculation of cost of goods sold

Particulars	Amount
Finished goods inventory Beginning	1,20,000
Add : cost of goods manufactured	18,85,000
Cost of goods available for sale	20,05,000
Less: Finished goods inventory ending	(1,25,000)
Unadjusted cost of goods sold	18,80,000
Add: Underapplied overheads	15,000
Adjusted cost of goods sold	$18,95,000