As of December 31 the following information for Baldwin Comp

As of December 31, the following information for Baldwin Company is provided:

Administrative Salaries $24,000

Depreciation of Factory equipment 18,750

Depreciation of delivery vehicles 6,000

Direct Labor 51,000

Factory supplies used 9,000

Finished goods inventory, January 1 42,750

Finished goods inventory, December 31 52,000

Factory insurance 11,625

Interest expense 10,000

Factory utilities 10,500

Factory maintenance 5,625

Raw materials inventory, January 1 7,000

Raw materials inventory, December 31 3,500

Raw material purchases 94,000

Rent on factory equipment 18,750

Repairs of factory equipment 8,600

Sales commissions 28,150

Goods in process inventory, January 1 4,000

Goods in process inventory, December 31 2,500

(a) Calculate the direct material used during the period.

(b) Calculate the total manufacturing costs incurred during the period.

(c) Calculate the Cost of Goods Manufactured during the period.

(d) Calculate the Cost of Goods Sold during the period.

Solution

Answer:

A. Calculate the direct material used during the period.

Raw materials inventory, January

7000

Add: Raw material purchase

94000

Less ;Raw materials inventory, December 31

-3500

Direct material used during the period.

97500

Direct material used during the period =$97500

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B. Calculate the total manufacturing costs incurred during the period.

Direct material used during the period.

97500

Direct labor

51000

Add; Other manufacturing cost

Depreciation of Factory equipment

18750

Factory supplies used

9000

Factory insurance

11625

Factory utilities

10500

Factory maintenance

5625

Rent on factory equipment

18750

Repairs of factory equipment

8600

Total overhead

82850

total manufacturing costs incurred during the period

231350

the total manufacturing costs incurred during the period =$231,350

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C. Calculate the Cost of Goods Manufactured during the period.

Goods in process inventory, January 1

4000

Add: total manufacturing costs incurred during the period

231350

Less: Goods in process inventory, December 31

-2500

Cost of Goods Manufactured during the period.

232850

Cost of Goods Manufactured during the period =$232,850

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D. Calculate the Cost of Goods Sold during the period.

Finished goods inventory, January 1

42750

Add: Cost of Goods Manufactured during the period.

232850

Less :Finished goods inventory, December 31

-52000

Cost of Goods Sold during the period

223600

Cost of Goods Sold during the period =223600

Raw materials inventory, January	7000
Add: Raw material purchase	94000
Less ;Raw materials inventory, December 31	-3500
Direct material used during the period.	97500