Beck Manufacturing reports the following information in T-accounts for the current year. Raw Materials Inventory Debit Credit Beginning 10,000 Purchases 45,000 Available for use 55,000 Direct materials used 46,500 Ending 8,500 Work in Process Inventory Debit Credit Beginning 14,000 Direct materials used 46,500 Direct labor 27,500 Overhead 55,000 143,000 Cost of goods manufactured 131,000 Ending 12,000 Finished Goods Inventory Debit Credit Beginning 16,000 Cost of goods manufactured 131,000 Available for sale 147,000 Cost of goods sold 129,000 Ending 18,000 1. Prepare the schedule of cost of goods manufactured for the year. 2. Compute cost of goods sold for the year.

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Tundexi Tundexi · Answer 1 · 2021-12-15T09:52:25+01:00

Cost of goods manufactured is $131,000 and Cost of goods sold is $129,000.

Cost of goods manufactured

Particulars Amount

Direct Material:

Beginning Inventory of Raw Material $10000

Add: Purchase of raw material $45000

Raw material available for use $55000

Less: Ending inventory of Raw material ($8500)

Direct Material used $46500

Direct labor $27500

Factory Overhead $55000

Total manufacturing Cost $129000

Add: Beginning inventory of WIP $14000

Total cost of WIP $143000

Less: Ending Inventory of WIP ($12000)

Cost of goods Manufactured $131000

Cost of goods sold for the year:

Particulars Amount

Beginning stock of finished goods $16000

Cost of goods manufactured $131000

Goods available for sale $147000

Ending stock of Finished goods ($18000)

Cost of goods sold $129000