The following balances are from the accounts of Tappan Parts: January 1 (Beginning) December 31 (Ending) Direct materials inventory $ 22,100 $ 25,400 Work-in-process inventory 32,200 29,100 Finished goods inventory 5,400 6,800 Direct materials used during the year amount to $45,500 and the cost of goods sold for the year was $53,400. Required: Prepare a cost of goods sold statement.

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Aggie

Business

22 August, 07:52

The following balances are from the accounts of Tappan Parts: January 1 (Beginning) December 31 (Ending) Direct materials inventory $ 22,100 $ 25,400 Work-in-process inventory 32,200 29,100 Finished goods inventory 5,400 6,800 Direct materials used during the year amount to $45,500 and the cost of goods sold for the year was $53,400. Required: Prepare a cost of goods sold statement.

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Audrina Stanton · Answer 1

Raw materials

Opening Inventory 22,100

purchases 47,800 (69,900 - 22,100)

available for use 69,900 (45,500 + 25,400)

closing Inventory (25,400)

cost of raw materials used 45,500

conversion cost 6,200 (51,700 - 45,500)

(labor and overhead)

cost added 51,700 (54,800 + 29,100 - 32,200)

WIP opening 32,200

WIP ending (29,100)

COGM 54,800 (60,200 - 5,400)

B. finished goods 5,400

available 60,200 (53,400 + 6,800)

E. finished goods (6,800)

COGS 53,400

Explanation:

Italic: given value

bold: calculate value