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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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Manufacturing statement is prepared as follows:

ParticularsAmount $Amount $
Direct material:
Beginning inventory38,000
Add: Purchases169,900
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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