Answer:
Cost of Goods Manufactured $ 213,000
Cost of Goods Sold $ 206,000
Step-by-step explanation:
If we add and subtract the following amounts in the correct order we get the Cost of Goods Manufactured and Sold Statement .
Strike Marine Company
Cost of Goods Manufactured and Sold Statement
Raw materials inventory Beginning $25,000
Add Purchases of direct materials $78,000
Less Raw materials inventory Ending $28,000
Direct Materials Used $ 75000
Direct labor $82,000
Manufacturing Overheads $ 41,000
Insurance on plant $9,000
Depreciation plant building and equipment $13,000
Indirect labor $15,000
Repairs and maintenance $4,000
Total Manufacturing Costs 198,000
Add Work in process inventory Beginning $50,000
Cost of Goods Available for Manufacture $ 248,000
Less Work in process inventory Ending $35,000
Cost of Goods Manufactured $ 213,000
Add Finished goods inventory Beginning $18,000
Cost of Goods Available for Sale 231,000
Less Finished goods inventory Ending $25,000
Cost of Goods Sold $ 206,000
The Manufacturing Overheads includes all the indirect expenses related to the manufacture of the product such as the indirect labor , the insurance and depreciation of plant and also the repairs.
The following are operating expense and included in the income statement not in the Cost of Goods Manufactured and Sold Statement. These relate to marketing and selling department.
Marketing expenses $77,000
General and administrative expenses $29,000