1. (9 points) The following data have been taken from the accounting records of Larder Corporation for the just completed yea. . $1,550,000 Sales…. Purchases of raw materials Direct labor S210,000 $345,000 Administrative expenses Selling expenses. Raw materials inventory, beginning.. Raw materials inventory, ending. Applied Manufacturing overhead…. $360,000 $315,000 $210,000 $170,000 $120,000 Work in process inventory, beginning… $120,000 Work in process inventory, ending…. $115,000 Finished goods inventory, beginning $150,000 $165,000 Finished goods inventory, ending… Required: of Goods Manufactured in good form. b. c. Compute the Cost of Goods Sold. Using data from your answers above, prepare an Income Statement (using the traditional format) materials inven tory o F raw matertalS rialS availabb le law materis I5 inventory zlo.oo0
Expert Answer
Opening inventory of raw material | 170,000.00 | |
Add: Purchase of Raw material | 210,000.00 | |
Less: Ending inventory of raw material | 120,000.00 | |
Raw Material consumed | 260,000.00 | |
Add: Direct Labour | 345,000.00 | |
Add: Applied manufacturing overhead | 360,000.00 | |
Add: Opening work in process | 120,000.00 | |
Less: Closing work in process | 115,000.00 | |
Add: Administrative expense | 315,000.00 | |
Cost of goods manufatured | 1,285,000.00 | |
Add: Opening inventory of finished goods | 150,000.00 | |
Less: Ending inventory of finished goods | 165,000.00 | |
Cost of goods sold | 1,270,000.00 | |
Add: Selling expense | 210,000.00 | |
Cost of sales | 1,480,000.00 | |
Add: Net profit | 70,000.00 | |
SALES | 1,550,000.00 |