Anglin Company Statement of Cost of Goods Manufactured For the Year Ended

Anglin company statement of cost of goods

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1. Anglin Company Statement of Cost of Goods Manufactured For the Year Ended December 31 Direct materials: Beginning inventory .................................................. $ 37,200 Add: Purchases ......................................................... 378,890 Freight-in on materials ..................................... 7,500 Materials available ..................................................... $423,590 Less: Ending inventory ............................................. 34,600 Direct materials used in production .............................. $ 388,990 Direct labor ...................................................................... 495,900 Manufacturing overhead: Factory supplies ........................................................ $ 18,500 Factory utilities .......................................................... 54,000 Factory supervision and indirect labor ................... 165,000 Materials handling ..................................................... 16,900 Total overhead costs ................................................. 254,400 Total manufacturing costs added .................................. $1,139,290 Add: Beginning work in process ................................... 201,000 Less: Ending work in process ....................................... (117,400) Cost of goods manufactured ......................................... $1,222,890 2. Anglin Company Statement of Cost of Goods Sold For the Year Ended December 31 Cost of goods manufactured ............................................................... $1,222,890 Add: Beginning finished goods inventory .......................................... 59,200
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Cost of goods available for sale .......................................................... $1,282,090 Less: Ending finished goods inventory .............................................. 62,700 Cost of goods sold ............................................................................... $1,219,390 Exercise 2.21 1. Direct materials used = $68,000 + $278,000 – $70,400 = $275,600 2. Direct materials ........................................................................ $275,600 Direct labor ..................................................................................... 189,000 Overhead ........................................................................................ 523,000 Total manufacturing cost .............................................................. $987,600 Add: Beginning work in process .................................................. 29,400 Less: Ending work in process ...................................................... (40,000) Cost of goods manufactured ........................................................ $977,000 Unit cost of goods manufactured = $977,000/100,000 = $9.77 3. Direct labor per unit = $9.77 – $2.70 – $5.30 = $1.77 Prime cost = $2.70 + $1.77 = $4.47 Conversion cost = $1.77 + $5.30 = $7.07 Problem 2.28 1. Direct materials = $124,000 + $250,000 – $102,000 = $272,000 2. Prime cost = $272,000 + $140,000 = $412,000 3. First, calculate total overhead cost: Depreciation on factory equipment .......................................... $ 45,000 Depreciation on factory building .............................................. 30,000 Factory insurance ...................................................................... 15,000 Factory property taxes ............................................................... 20,000
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