Determine the cost of goods sold for the period Refer to
Determine the cost of goods sold for the period.
Refer to E9.12.
Using the following information, determine the cost of goods manufactured and the ending direct materials inventory balance for Steele Company during August 2010. Assume that over- or under applied manufacturing overhead is closed to Cost of Goods Sold at the end of the period.
Direct materials inventory, Aug. 1, 2010 $ ................................................. 21,000
Direct materials inventory, Aug. 31, 2010 .................................................. ?
Work- in- process inventory, Aug. 1, 2010 ................................................. 4,000
Work- in- process inventory, Aug. 31, 2010 ............................................... 16,000
Finished goods inventory, Aug. 1, 2010 ..................................................... 8,000
Finished goods inventory, Aug. 31, 2010 .................................................... 10,000
Direct materials used .................................................................................... 30,000
Direct labor used ............................................................................................ 20,000
Direct materials purchased .............................................................................. 35,000
Indirect materials used (supplies) .................................................................... 6,000
Indirect labor used .......................................................................................... 25,000
Manufacturing overhead, other ....................................................................... 29,000
Administrative salaries ..................................................................................... 15,000
Sales salaries and commissions ........................................................................ 10,000
Depreciation on sales and office equipment ....................................................... 14,000
Manufacturing overhead, applied ....................................................................... 65,000
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