Question

The following balances are from the accounts of Tappan Parts:

January 1 (Beginning)			December 31 (Ending)
Direct materials inventory	$	22,300		$	25,300
Work-in-process inventory		32,500			29,300
Finished goods inventory		5,300			7,300

Direct materials used during the year amount to $46,500 and the cost of goods sold for the year was $53,100.

Prepare a cost of goods sold statement.

Answer 1

TAPPAN PARTS
COST OF GOOD SOLD STATEMENT
Beginning work-in-process inventory		32,500
Manufacturing cost
Direct Material
Beginning	22,300
Added during the period	49,500
Material Available	71,800
Less : Ending	(25,300)
Direct material used	46,500
Other manufacturing costs	5,400
Total manufacturing costs:		51,900
Total costs of work-in-process		84,400
Less:Ending work-in-process		(29,300)
Cost of goods manufactured / Finished goods available for sale		55,100
Beginning finished goods inventory		5,300
Less: Ending finished goods inventory		(7,300)
Cost of goods sold			53,100

WORKING NOTES

Direct material used =	Opening +added during period - ending
46500 =	22300 +added - 25300
Added =	46500 + 25300 -22300
Added =	49500
Cost of goods sold =	OpeningF Finished Good + FG during period - clsoing Finished good
53100 =	5300 + FG during period - 7300
FG during period =	53100 + 7300 - 5300
FG during period =	55100
FG transferred from WIP =	Opening + manufacturing cost - closing
55100 =	32500+ manufacturing cost - 29300
manufacturing cost =	55100 + 29300 - 32500
manufacturing cost =	51900
manufacturing cost =	Direct material used + other mfg cost
51900 =	46500 + other mfg cost
other mfg cost =	5400