Question

Annapolis Company manufactures quality boating apparel. The following selected financial information for the fiscal year 2018 is provided:

Item Amount

Sales $850,000

Beginning Raw Material Inventory 74,000

Direct Material Purchased 308,000

Factory Overhead 90,000

Finished Goods Inventory - January 1 144,000

Work in Process - January 1 74,000

Work in Process - December 31 98,000

Ending Raw Material Inventory 58,000

Finished Goods Inventory - December 31 168,000

Net Income 65,000

Direct Labor 155,000

Cost of Goods Sold 655,000

Use this information to prepared a detailed Schedule of Costs of Goods Manufactured for FY 2018: (Round dollar values & enter as whole dollars only. Properly title your statement.)

Answer 1

First Prepare Statement of Cost of goods Manfactured
Particulars			Amount
Direct Materials :
Beginning R/M inventory	$   74,000
Add : Purchases of raw materials	$ 308,000
Raw materials available for use	$ 382,000
Less : Ending R/M inventory	$ (58,000)
Raw materials used in production			$        324,000
Direct labour			$        155,000
Factoryg Overhead			$         90,000
Total manfacturing Costs			$      569,000
Add : Beginning WIP			$         74,000
Less : Ending WIP			$        (98,000)
Cost of Goods Manfactured			$      545,000
Statement of Cost of Goods sold ;
Particulars			Amount
Beginning Finished goods inventory			$        168,000
Add : Cost of goods manfactured			$        545,000
Goods available for sale			$      713,000
Less :Ending finished goods inventory			$        (58,000)
Cost of goods sold			$      655,000