R Materialbegin vear 50000 Deprecn Plant equipt S26000 RMate

R Material-begin vear $50,000 Deprec\'n- Plant equip\'t S26.000 R/Material- end ofyear 56,000 Repairs and mtce -plant8,000 WIP. beg, ofyear WIP-end ofyear Fin goods beg, ofyear 36,000 Indirect labour Fin/ goods - end ofyear 50,000 Direct labour Purchase of dir materials 30,000Marketing expenses 40,000 1 00.000 Insurance-plant 18,000 70,000 General andadmin exp 25,000 164,000 a)Prepare a Schedule of Cost of Goods Manufactured in good form for the year. b) Determine the Cost of Goods Sold for the year

Solution

Schedule of Cost of Goods Manufactured For the year ended Direct materials Beginning Raw Materials                  50,000 Add: Raw Material Purchases                  30,000 Total Raw Materials Available for use                  80,000 Less: Ending Raw Materials                 -56,000 Raw material used in production          24,000 Direct Labour      1,64,000 Factorty overhead: Depreciation expense- Plant Equipment                  26,000 Repairs & Maintenance -Plant                     8,000 Insurance -Plant                  18,000 Indirect labour                  30,000 Total Factory overhead cost          82,000 Total Manfucature costs      2,70,000 Beginning Work In progess      1,00,000 Total manufacturing costs      3,70,000 Less :Ending Work In progess        -70,000 Cost Goods Manufactured      3,00,000 Cost of Goods Sold for the year Cost Goods Manufactured               3,00,000 Add : Beginning Finshed Goods                  36,000 Finished Goods Available for Sale               3,36,000 Less: Ending Finshed Goods                 -50,000 Cost of Goods Sold      2,86,000