Given the following selected account balances of Shanta Company. Sales $1,460,000 Raw materials...
Question:
Given the following selected account balances of Shanta Company.
| Sales | $1,460,000 |
| Raw materials inventory, Dec. 31, 2012, | $38,000 |
| Goods in process inventory, Dec. 31, 2012, | $56,200 |
| Finished goods inventory, Dec. 31, 2012, | $68,000 |
| Raw materials purchases | $169,900 |
| Direct labor | $222,000 |
| Factory computer supplies used | $21,500 |
| Indirect labor | $58,000 |
| Repairs-Factory equipment | $5,250 |
| Rent cost of factory building | $54,000 |
| Advertising expense | $93,000 |
| General and administrative expenses | $135,000 |
| Raw materials inventory, Dec. 31, 2013, | $44,800 |
| Goods in process inventory, Dec. 31, 2013, | $43,900 |
| Finished goods inventory, Dec. 31, 2013, | $67,000 |
Prepare its manufacturing statement for the year ended on December 31, 2013.
Manufacturing Statement:
It is a schedule used to calculate the cost of goods manufactured in an accounting year. It helps track an item's cost, how much direct material is used, manufacturing overhead per unit, etc.
Answer and Explanation: 1
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View this answerManufacturing statement is prepared as follows:
| Particulars | Amount $ | Amount $ |
| Direct material: | ||
| Beginning inventory | 38,000 | |
| Add: Purchases | 169,900 | |
| Less:... |
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Cost of Goods: Definition & Calculation
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Chapter 3 / Lesson 13
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The cost of goods is the expenses used to produce products, provide services, or acquire inventory. Study the definition of cost of goods and how to calculate it in this lesson.
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