Understanding the Relationship between Cost Flows, Inventories,and Cost of Goods Sold
Ivano Company has collected cost accounting information for thefollowing subset of items for Years 1 and 2.
Required:
Calculate the values of the missing items.
Year 1 Year 2 Item: Direct materials used in production $ $50,000 Direct materials: Beginning inventory $10,000 $ Direct materials purchases 45,000 $ Direct materials: Ending inventory 15,000 17,000 Direct labor used in production $ 53,000 Manufacturing overhead costs used in production 80,000 76,000 Work in process: Beginning inventory 17,000 14,000 Work in process: Ending inventory 14,000 19,000 Finished goods: Beginning inventory 8,000 7,000 Finished goods: Ending inventory 7,000 11,000 Cost of goods sold 169,000 $
Understanding the Relationship between Cost Flows, Inventories,and Cost of Goods Sold
Ivano Company has collected cost accounting information for thefollowing subset of items for Years 1 and 2.
Required:
Calculate the values of the missing items.
| Year 1 | Year 2 | |
| Item: | ||
| Direct materials used in production | $ | $50,000 |
| Direct materials: Beginning inventory | $10,000 | $ |
| Direct materials purchases | 45,000 | $ |
| Direct materials: Ending inventory | 15,000 | 17,000 |
| Direct labor used in production | $ | 53,000 |
| Manufacturing overhead costs used in production | 80,000 | 76,000 |
| Work in process: Beginning inventory | 17,000 | 14,000 |
| Work in process: Ending inventory | 14,000 | 19,000 |
| Finished goods: Beginning inventory | 8,000 | 7,000 |
| Finished goods: Ending inventory | 7,000 | 11,000 |
| Cost of goods sold | 169,000 | $ |
Related questions
The following balances are from the accounts of CrabtreeMachining Company:
| January 1 (Beginning) | December 31 (Ending) | |||||
| Direct materials inventory | $ | 98,500 | $ | 110,700 | ||
| Work-in-process inventory | 107,200 | 105,100 | ||||
| Finished goods inventory | 43,100 | 46,400 | ||||
Direct materials purchased during the year amount to $513,400,and the cost of goods sold for the year was $1,870,000.
Required:
Prepare a cost of goods sold statement.
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************I HAVE FIGURED OUT EVERY NUMBER BESIDES THE OTHERMANUFACTURING COST!!!! HOW DO I FIGURE OUT THATNUMBER???????????????????? ONCE I FIGURE OUT THAT NUMBER IT WILLCHANGE THE OTHER NUMBERS, SO THE PROBLEM WILL BE CORRECT.
Required information
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Sierra Company manufactures woven blankets and accounts for product costs using process costing. Data below are for one of its processing departments. The following information is available regarding its May inventories
| Beginning Inventory | Ending Inventory | |||||
| Raw materials inventory | $ | 65,000 | $ | 77,000 | ||
| Work in process inventory | 441,500 | 555,000 | ||||
| Finished goods inventory | 632,000 | 517,000 | ||||
The following additional information describes the company's production activities for May.
| Raw materials purchases (on credit) | $ | 250,000 | |
| Factory wages cost (paid in cash) | 1,562,000 | ||
| Other overhead cost (Other Accounts credited) | 38,000 | ||
| Materials used | |||
| Direct | $ | 158,000 | |
| Indirect | 80,000 | ||
| Labor used | |||
| Direct | $ | 800,000 | |
| Indirect | 762,000 | ||
| Overhead rate as a percent of direct labor | 110 | % | |
| Sales (on credit) | $ | 3,500,000 | |
The predetermined overhead rate was computed at the beginning of the year as 110% of direct labor cost.
1. Compute the cost of products transferred from production to finished goods and cost of goods sold.
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