Hard Rock Productions is a small manufacturer of one single product. You have been hired as the
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Question:
Hard Rock Productions is a small manufacturer of one single product. You have been hired as the controller of the company and your first task is to calculate the true cost of goods manufactured. The president’s secretary tried to be helpful by providing you with an alphabetized list of costs:
Administrative salaries | $2,400 |
Advertising expense | $1,200 |
Depreciation - factory building | $800 |
Depreciation - factory equipment | $1,600 |
Depreciation - office equipment | $180 |
Direct labour cost | $21,900 |
Raw materials inventory, beginning | $2,100 |
Raw materials inventory, ending | $3,200 |
Finished goods inventory, beginning | $46,980 |
Finished goods inventory, ending | $44,410 |
General liability insurance expense | $240 |
Indirect labour cost | $11,800 |
Insurance on factory | $1,400 |
Purchases on raw materials | $14,600 |
Repairs and maintenance of factory | $900 |
Sales salaries | $2,000 |
Taxes on factory | $450 |
Travel and entertainment expense | $1,410 |
Work-in-process inventory, beginning | $1,670 |
Work-in-process inventory, ending | $1,110 |
- Required:
- Prepare a schedule of cost of goods manufactured in good form for the year.
- Determine the cost of goods sold for the year.
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