Question

he following balances are from the accounts of Tappan Parts: January 1 (Beginning) December 31 (Ending) Direct materials inventory $ 22,300 $ 25,000 Work-in-process inventory 32,400 29,300 Finished goods inventory 5,800 7,000 Direct materials used during the year amount to $45,600 and the cost of goods sold for the year was $52,600. Required: Prepare a cost of goods sold statement.

Answer 1

Tappan Parts

Cost OF Goods Sold Statement

For the year Ending ---------------

Opening Inventory Materials $ 22,100

Add Purchases $ 48,300

Less Ending Inventory $ 24,500

Materials Used (given) $ 45,900

Add Conversion Costs $ 4,300

Total Manufacturing Costs $ 50,200

Add Opening Work In Process $ 33,000

Less Closing Work In Process $ 29,400

Cost Of goods Manufactured $ 53,800

Add Finished Goods Opening Inventory $ 5,700

Cost of Goods Available for Sale $ 48,100

Less Finished Goods Inventory $ 6,900

Cost of Good sold $ 52,600 (given)

As the Cost Of Goods Sold and Material Used are given we use these values to calculate the rest and do reverse operations