Question

Cost of Goods Manufactured for a Manufacturing Company Two items are omitted from each of the following three lists of cost of goods manufactured statement data. Determine the amounts of the missing items, identifying them by letter. Work in process inventory, August 1 $19,660 $41,650 (e) Total manufacturing costs incurred during August 332,750 (c) 1,075,000 Total manufacturing costs (a) $515,770 $1,240,000 Work in process inventory, August 31 23,500 54,000 (f) Cost of goods manufactured (b) (d) $1,068,000 a. $ b. $ c. $ d. $ e. $ f. $

Answer 1

The missing items have been calculated by using the COGM formula. Total manufacturing costs and costs of goods manufactured for the first set of data are $328,910, and for the second set $1,228,650 COGM is $1,241,300. Work in process inventory at the beginning and end of August were also identified.

Step-by-step explanation:

The problem presented involves calculating the missing items in cost of goods manufactured statement data for a manufacturing company. These calculations require an understanding of the relationships between different components of the cost of goods manufactured (COGM) formula. The COGM is calculated as: Total Manufacturing Costs + Opening Work in Process Inventory - Closing Work in Process Inventory.

For the first set of data:

• (a) Total manufacturing costs = $332,750 + $19,660 - $23,500 = $328,910
• (b) Cost of goods manufactured = $332,750 + $19,660 - $23,500 = $328,910

For the second set of data:

• (c) Total manufacturing costs incurred during August = $1,240,000 + $41,650 - $54,000 = $1,228,650
• (d) Cost of goods manufactured = $1,241,300

The missing values identified by letters are:

• (e) Work in process inventory, August 1 = $1,075,000 - $1,000,000 = $75,000
• (f) Work in process inventory, August 31 = $68,000

Answer 2

(A) 352,410

(B) 328,910

(C) 474,120

(D) 461,770

(E) 165,000

(F) 175,000

Step-by-step explanation:

1.- WIP, August 1st: $ 19,660 $ 41,650 (e)

2.- Cost added $ 332,750 (c) $ 1,075,000

3.- Subtotal (a) $ 515,770 $ 1,240,000

4.- WIP, August 31th $ 23,500 $ 54,000 (f)

5.- COGM (b) (d) $1,068,000

The identity to solve for this is as follow:

`$$beginning WIP + cost added = COGM +  ending WIP`

The third row is the sum of the left side of the of the equation.

beginning WIP + cost added.

(a) 332,750 + 19,660 = 352,410

(c) 515,770 - 41,650 = 474,120

(e) 1,240,000 - 1,075,000 = 165,000

COMG will be third row less fourth row

the ending WIP subtracted from the left side

(b) 352,410 - 23,500 = 328,910

(d) 515,770 - 54,000 = 461,770

(f) 1,240,000 - 1,068,000 = 175,000