Nis question: 25 pts 1 of 4 (0 complete This Test: 100 pt Natural Bones manufactures…
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Question “Nis question: 25 pts 1 of 4 (0 complete This Test: 100 pt Natural Bones manufactures…”
|Cost of Goods Manufactured|
Year Ended December 31,|
|($ )||($ )||($ )|
|Start Work-in-Process Stock||–|
|Direct Materials Used:|
|Beginning Raw Materials Inventory||13,300.00|
|Raw Materials Purchases||31,000.00|
|Raw Materials for Use||44,300.00|
|Less : Ending Raw Materials Inventory||10,000.00|
|Direct Materials Used||34,300.00|
|Tools for Plant||1,400.00|
|Plant Janitorial Services||400.00|
|Rent on Plant||18,000.00|
|Total Manufacturing Overhead||19,800.00|
|Total Manufacturing costs incurred during the year||76,100.00|
|Less – Ending Work in-Process Inventory||1,100.00|
|Price of Goods Manufactured||75,000.00|
|Total manufacturing cost for the year +Direct labour +Manufacturing OH|
|Total Manufacturing Cost + Open WIP – EndingWIP = Cost of Goods Made|
Year Ended December 31,|
|($ )||($ )|
|Price of Goods Sold:|
|Beginning Finished Goods Inventory||–|
|Price of goods||75,000.00|
|Prices of goods available for sale||75,000.00|
|Less: Ending Finished Goods Inventory||5,900.00|
|Price of Goods Sold||69,100.00|
|Administration and Selling Expenses|
|Sales Salary Expenses||5,300.00|
|Customer Service Hotline Expenses||1,800.00|
|Total Selling and Administration Expenses||8,800.00|
A manufacturing company will have different expenses categories than a merchandising business.
Reporting earnings is the same method for manufacturers and merchandisers.
This figure can be calculated by adding inventory at the beginning to inventory bought during the accounting period. Add the inventory at the end to the period and subtract freight charges. This is the cost of goods for a merchandiser.
Manufacturers divide the cost of goods into different categories. The first category includes manufacturing expenses. Also, the manufacturer must inventory goods-in progress. Manufacturers must also count the finished products that are ready for sale. In determining the costs related to the price of goods, manufacturers also consider the cost for manufacturing labour and overhead. This is very different from merchandisers, who don’t include labor in the cost-of goods figures.
A merchandiser defines expenses as the “cost of goods sold.” Manufacturers also refer to expenses as the “cost of goods made.”
The cost of goods
manufactured is used to calculate a manufacturer’s cost per unit of goods sold. A merchandiser’s cost to sell goods is determined by its merchandise purchases. The manufacturer’s cost to sell goods is determined by the cost of its goods manufactured. A merchandiser’s cost to sell goods is, however, determined by the merchandise it has purchased.
|Cost of Goods Made||75,000.00|
|Unite Production cost= Cost of Goods Manufactured/Units Made|
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