Required information The following information applies to th

Required information [The following information applies to the questions displayed below.) The following data refer to San Fernando Fashions Company for the year 20x2: Sales revenue Work-in-process inventory, December 31 Work-in-process inventory, January 1 Selling and administrative expenses Income tax expense Purchases of raw material Raw-material inventory, December 31 Raw-material inventory, January 1 Direct labor Utilities: plant Depreciation: plant and equipment Finished-goods inventory, December 31 Finished-goods inventory, January 1 Indirect material Indirect labor Other manufacturingoverhead $1,050,000 30,000 36,000 150,000 80,000 160,000 25,000 30,000 180,000 40,000 40,000 50,000 15,000 10,000 12,000 40,000

Solution

1. Selling and administrative expenses and income tax expense are not directluy related to production. So they were excluded while calculating COGS.

Calculation of Cost of goods manufactured
Particulars	Amount	Amount
Work in Process Jan 1		36,000.00
Direct Materials
Raw Materials Jan 1	30,000.00
Raw Materials Purchases	1,60,000.00
Total Raw Materials available for use	1,90,000.00
Less: Raw Materials 31st Dec	-25,000.00
Direct Materials Used(190000-25000)		1,65,000.00
Direct labour		1,80,000.00
Manufacturing Overhead
Utilities Plant	40,000.00
Depreciation on Plant & Equipment	40,000.00
Indirect Material	10,000.00
Indirect labour	12,000.00
Other manufacturig Overhead	40,000.00
Total Manufacturing Overheads		1,42,000.00
Total cost of work in process(36000+165000+180000+142000)		5,23,000.00
Less: Work in process Dec 31		-30,000.00
Cost of goods manufactured(523000-30000)		4,93,000.00