Answer:
Tappan Parts:
Cost of goods sold statement:
Beginning inventory:
Direct materials $21,800
WIP 32,300
Finished goods 5,500
Total $59,600
Purchases of materials 53,400
Available $113,000
less Ending inventory:
Direct materials $24,600
WIP 29,200
Finished goods 6,500
Total $60,300
Cost of goods sold $52,700
Step-by-step explanation:
a) Data and Calculations:
January 1 (Beginning) December 31 (Ending)
Direct materials inventory $ 21,800 $ 24,600
Work-in-process inventory 32,300 29,200
Finished goods inventory 5,500 6,500
Direct materials used during the year amount to $46,000 and the cost of goods sold for the year was $52,700
b) The missing figure in the above statement is the purchases of raw materials. This is determined by adding the cost of goods sold to the ending inventory of raw materials, work in process, and finished goods. This gives the cost of raw materials, WIP, and finished goods available for sale. Then the beginning inventories of raw materials, WIP, and finished goods are deducted to obtain the amount of purchases of materials made during the period.