Answer:
The Solar Clothing Company (SCC)
The cost of goods sold for July 2018 is:
= $4,850,000
Step-by-step explanation:
a) Data and Calculations:
Direct Materials Inventory July 1, 2018 $1,250,000
Direct Labor $775,000
Work in Process Inventory July 31, 2018 $500,000
Finished Goods Inventory July 1, 2018 $950,000
Direct Materials Purchased $2,750,000
Factory Overhead $650,000
Direct Materials Inventory July 31, 2018 $700,000
Work in Process Inventory July 1, 2018 $525,000
Finished Goods Inventory July 31, 2018 $850,000
T-accounts
Direct Materials Inventory
Date Account Titles Debit Credit
July 1, 2018 Beginning balance $1,250,000
Direct Materials Purchased $2,750,000
Work in Process $3,300,000
Direct Materials Inventory July 31, 2018 $700,000
Work in Process Inventory
Date Account Titles Debit Credit
July 1, 2018 Beginning balance $525,000
Direct materials Inventory 3,300,000
Direct Labor 775,000
Factory Overhead 650,000
Finished Goods Inventory $4,750,000
Work in Process Inventory July 31, 2018 $500,000
Finished Goods Inventory July 1, 2018
Date Account Titles Debit Credit
July 1, 2018 Beginning balance $950,000
Work in Process 4,750,000
Cost of goods sold $4,850,000
Finished Goods Inventory July 31, 2018 $850,000