The following information is from Marchant Manufacturing Co. forSeptember. You are required to prepare the;...
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Accounting
The following information is from Marchant Manufacturing Co. forSeptember.
You are required to prepare the;
a. Compute the Cost of Goods Sold.
b. Compute the balance in Finished Goods Inventory at September 30.
c. Compute the balance in Work in Process Inventory at September 30.
d. Compute the balance in Raw Materials Inventory at September 30.
e. Compute the total manufacturing overhead.
Direct materials used in production
$95,000
Direct labour
$67,000
Total manufacturing cost
$234,000
Raw materials inventory, Sept. 1
$24,000
Work in process inventory, Sept. 1
$6,000
Finished goods inventory, Sept. 1
$101,000
Purchases of raw materials
$102,000
Cost of goods manufactured
$233,000
Administrative expense
$41,000
Selling expense
$56,000
Sales
$344,000
Gross margin
$127,000
Net income
$30,000
(Hints:i-The easiest method of solving this problem is toprepare asketchthe income statement
and theschedule of cost of goods manufactured, enter the given amounts, and then enter the
unknownsasmissing (difference)figures.
ii- You should use the COGS format /templates sent to youalready)
The following information is from Marchant Manufacturing Co. forSeptember.
You are required to prepare the;
a. Compute the Cost of Goods Sold.
b. Compute the balance in Finished Goods Inventory at September 30.
c. Compute the balance in Work in Process Inventory at September 30.
d. Compute the balance in Raw Materials Inventory at September 30.
e. Compute the total manufacturing overhead.
Direct materials used in production | $95,000 |
Direct labour | $67,000 |
Total manufacturing cost | $234,000 |
Raw materials inventory, Sept. 1 | $24,000 |
Work in process inventory, Sept. 1 | $6,000 |
Finished goods inventory, Sept. 1 | $101,000 |
Purchases of raw materials | $102,000 |
Cost of goods manufactured | $233,000 |
Administrative expense | $41,000 |
Selling expense | $56,000 |
Sales | $344,000 |
Gross margin | $127,000 |
Net income | $30,000 |
(Hints:i-The easiest method of solving this problem is toprepare asketchthe income statement
and theschedule of cost of goods manufactured, enter the given amounts, and then enter the
unknownsasmissing (difference)figures.
ii- You should use the COGS format /templates sent to youalready)
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