1 Templar Company a manufacturing firm has supplied the foll

1. Templar Company, a manufacturing firm, has supplied the following information from its accounting records for the month of November: Factory supplies used Depreciation on factory building Salary of company controller Factory janitorial costs Marketin Direct labor cost Purchases of raw Finished Goods Inventory, Nov. 1 Finished Goods Inventory, Nov. 30 Work in Process Inventory, Nov. 1 Work in Process Inventory, Nov. 30 Materials Inventory, Nov. 1 Materials Inventory, Nov. 30 $18,000 17,000 6,000 5,000 4,500 22,000 10,000 2,250 3,750 4,200 2,750 3,500 5,100 g and promotion materials Required: a. Prepare a Statement of Cost of Goods Manufactured b. Prepare a Statement of Cost of Goods Sold

Solution

A. Prepare a Statement of Cost of Goods Manufactured Templar Company Statement of Cost of Goods Manufactured For the Month of November Materials inventory, Nov. 1 $        3,500 Purchases of materials          10,000 Materials inventory, Nov. 30          (5,100) Materials used $        8,400 Direct labor          22,000 Overhead (18000+17000+5000)          40,000 Total manufacturing costs          70,400 Work-in-process inventory, Nov. 1            4,200 Work-in-process inventory, Nov. 30          (2,750) Cost of goods manufactured $      71,850 B. Prepare a Statement of Cost of Goods Sold. Templar Company Statement of Cost of Goods Sold For the Month of November Cost of goods manufactured $      71,850 Finished goods inventory, Nov. 1            2,250 Finished goods inventory, Nov. 30          (3,750) Cost of goods sold $      70,350