Q#1

Manufacturing cost =raw material used + Direct labor + Factory over head or Manufacturing over head
Raw material used = total cost of raw material purchase + cost of raw material openining - raw material ending
total cost of raw material Purhcase = raw material purchase -( raw material pruchase return + raw material discount ) + transporation cost

Manufacuring cost
Net raw material purchase 2,400,000
add transporation cost 32,000
total cost of raw material purchase 2,432,000
add cost of raw material opening 176,000
cost of raw material available for use 2,608,000
less cost of raw material ending 196,000
raw material used 2,412,000
Direct labor 3,204,000
Factory over head 1,885,600
Manufacturing cost 7,501,600

cost of goods Manufactured = Manufactuirng cost + cost of work in process openining - cost of work in proces
Manufacturing cost 7,501,600
add cost of work in process opening 129,800
total cost of work in process during the year 7,631,400
less cost of work in process ending 136,800
cost of goods Manufactured 7,494,600

cost of goods sold = cost of goods manufactured + cost of finished goods openining - cost of finished goods
cost of goods Manufactured 7,494,600
add cost of finished goods pening 620,000
total cost of goods available for sales 8,114,600
less cost of finished goods ending 467,400
cost of goods sold 7,647,200
transporation cost

ining - cost of work in process ending

ning - cost of finished goods ending

Q#1
Manufacturing cost =raw material used + Direct labor + Factory over head or Manufacturing over head
Raw material used = total cost of raw material purchase + cost of raw material openining - raw material ending
total cost of raw material Purhcase = raw material purchase -( raw material pruchase return + raw material discount ) + transp

Name of company
Statement of cost of goods sold
for the period ended
total cost of raw material purchase 36,000
add cost of raw material opening 8,000
cost of raw material available for use 44,000
less cost of raw material ending 8,500
raw material used 35,500
Direct labor 15,000
Factory over head ( 15000 X 2/3 ) 10,000
Manufacturing cost 60,500
add cost of work in process opening 8,000
total cost of work in process during the year 68,500
less cost of work in process ending 15,200
cost of goods Manufactured 53,300
add cost of finished goods Opening 7,000
total cost of goods available for sales 60,300
less cost of finished goods ending 10,200
cost of goods sold 50,100

Name of company
Statement of cost of goods sold
for the period ended
Net sales 72,000
less cost of goods sold 50,100
gross profit 21,900
less operating exp
Marketing exp ( 5% of sales ) 3600
administrative exp ( 1% of sales ) 720
other exp ( 0.5% of sales ) 360
total operating exp 4,680
oprating income 17,220
 head
aterial ending
material discount ) + transporation cost