E228A Work backward to find missing amounts Learning Objecti

E228A Work backward to find missing amounts (Learning Objective 5) Smooth Sounds manufactures and sells a new line of MP3 players. Unfortunately, Smooth Sounds suffered serious fire damage at its home office. As a result, the accounting records for October were partially destroyed-and completely jumbled. Smooth Sounds has hired you to help figure out the missing pieces of the accounting puzzle. Assume that Smooth Sounds\' raw materials inventory contains only direct materials. y, October 31. $ 1,500 4,300 3,000 9,000 Finished goods inventory, October 1. Direct labour in October. Purchases of direct materials in October Work in process inventory, October 1 Revenues in October Gross profit in October.. 27,000 12,000 8,000 3,000 6,300 Raw materials inventory, October 3,.... Manufacturing overhead in October.. Requirement Find the following amounts: a. Cost of goods sold in October b. Beginning raw materials inventory c. Ending finished goods inventory (Hint: You may find Exhibits 2-15 and 2 16 helpful.) netermine whether information is relevant (Learning Objective 6) 6.29A nunnt or irrelevant to the decision at hand

Solution

a. Cost of goods sold=Revenue-Gross profit=27000-12000=15000 b. Raw materials inventory,Oct 31 3000 Direct materials used 8000 11000 Less:Direct materials purchased 9000 Raw materials inventory,Oct 1 2000 c. Finished goods inventory,Oct 1 4300 Cost transferred from work in process (Note:1) 15800 20100 Less: Cost of goods sold 15000 Finished goods inventory,Oct 31 5100 Note: 1 Work-in-process inventory,Oct 1 0 Add: Direct materials used 8000 Direct labor 3000 Manufacturing overhead 6300 17300 Less: Work-in-process inventory,Oct 31 1500 Cost transferred to finished goods 15800