Exercise 175 The following information is available for Elliot Company January 1, 2013 $26,000 13,500 30,000 2013 December 31, 2013 Raw materials inventory Work in process inventory Finished goods inventory Materials purchased Direct labor Manufacturing overhead Sales $30,000 22,200 21,000 $170,000 220,000 180,000 800,000 Compute cost of goods manufactured. Cost of goods manufactured
Solution
Answer:Cost of goods manufactured:
(a) Direct Material Used= Opening raw material +Net purchases - Closing raw material
=$26000+$170000-$30000
=$166000
(b) Total manufacturing cost =Direct material used +Direct labor+Manufacturing overhead
=$166000+$220000+$180000
=$566000
(c) Cost of goods manufactured=Total manufacturing cost+Opening work in progress - Closing work in progresss
=$566000+$13500-$22200
=$557300
Answer: Cost of goods sold =Cost of goods manufactured +Opening finished goods - Closing finished goods
=$557300+$30000-$21000
=$566300
Income statement = Revenue - Cost of goods sold
=$800000-$566300
=$233700
.
Exercise 175 The following information is available for Elliot Company.docx
1. Exercise 175 The following information is available for Elliot Company January 1, 2013
$26,000 13,500 30,000 2013 December 31, 2013 Raw materials inventory Work in process
inventory Finished goods inventory Materials purchased Direct labor Manufacturing overhead
Sales $30,000 22,200 21,000 $170,000 220,000 180,000 800,000 Compute cost of goods
manufactured. Cost of goods manufactured
Solution
Answer:Cost of goods manufactured:
(a) Direct Material Used= Opening raw material +Net purchases - Closing raw material
=$26000+$170000-$30000
=$166000
(b) Total manufacturing cost =Direct material used +Direct labor+Manufacturing overhead
=$166000+$220000+$180000
=$566000
(c) Cost of goods manufactured=Total manufacturing cost+Opening work in progress - Closing
work in progresss
=$566000+$13500-$22200
=$557300
Answer: Cost of goods sold =Cost of goods manufactured +Opening finished goods - Closing
finished goods
=$557300+$30000-$21000
=$566300
2. Income statement = Revenue - Cost of goods sold
=$800000-$566300
=$233700
