1.The following inventory data relate to the Reta Company: INVENTORIES Beginning Ending Finished goods $80,000 $100,000 Work...
Question:
1.The following inventory data relate to the Reta Company:
INVENTORIES
Beginning | Ending | |
Finished goods | $80,000 | $100,000 |
Work in process | 65,000 | 70,000 |
Direct materials | 60,000 | 64,000 |
Revenues and costs for the period:
Sales | $740,000 |
Cost of goods available for sale | 650,000 |
Total manufacturing costs | 575,000 |
Factory overhead | 154,000 |
Direct materials used | 164,000 |
Selling and administrative expenses | 51,000 |
a. Direct materials purchased
b. Direct labor costs incurred
c. Cost of goods sold
e. How does cost of goods sold statement differ from income statement?
2.The following data was taken from the general ledger and other records of Martinez Manufacturing Co. at July 31, the end of the first month of operations in the current fiscal year:
Sales $50,000
Materials inventory (July 1) 15,000
Work in process inventory (July 1) 20,000
Finished goods inventory (July 1) 28,000
Materials purchased 21,000
©Al Tareeqah Management Studies - 2020 8
Direct labor cost 12,500
Factory overhead (including $5,000 of indirect materials used and $2,500 of indirect labor cost)
11,500
Selling and administrative expense 8,000
Inventories at July 31:
Materials 16,000
Work in process 18,000
Finished goods 30,000
a. Prepare a statement of cost of goods manufactured.
b.Determine the cost of goods sold for the month.
c. What are the applications of cost of goods sold and cost of goods manufactured statements?