Exercise 175 The following information is available for Elli

Exercise 175 The following information is available for Elliot Company. January 1, December 31, 2016 2016 $26,000 18,500 30,000 2016 $30,000 22,200 21,000 Raw materials inventory Work in process inventory Finished goods inventory Materials purchased Direct labor Manufacturing overhead $170,000 734,000 180,000 800,000 Compute cost of goods manufactured. Cost of goods manufactured

Solution

Work-in-process, 1/1 18500 Direct materials Materials inventory, 1/1 26000 Materials purchased 170000 Materials available for use 196000 Less: Materials inventory, 12/31 30000 Direct materials used 166000 Direct labor 230000 Manufacturing overhead 180000 Total manufacturing costs 576000 Total cost of work-in-process 594500 Less: Work-in-process, 12/31 22200 Cost of goods manufactured 572300 b Sales 800000 Cost of goods sold: Finished goods, 1/1 30000 Cost of goods manufactured 572300 Cost of goods available for sale 602300 Less: Finished goods, 12/31 21000 Cost of goods sold 581300 Gross profit 218700