Smexy
Jul 18, 2009, 12:27 PM
Hello guys, i just need help on something.
I was asked to prepare a statement of cost of goods manufactured. I really can't analyze this problem. I kinda need a guide
a. Total Manufacturing cost during the year was P1,000,000, including direct materials, direct labor and factory overhead.
b. Cost of goods manufactured during the year was P970,000.
c. factory overhead charged to work in process was 75% of direct labor cost and 27% of the total manufacturing cost.
d. The beginning work in process inventory, january 1, was 40% of the ending work in process inventory, december 31.
Required: Prepare a statement of cost of goods manufactured for the year ended.
* i already tried it by setting up a statement of cost of goods manufactured and tried putting the given information at the appropriate spaces. But unfortunately, It's kinda algebraic and i really don't know how to start solving it.
Maybe like this?
Cost of direct materials xxxxx
Direct Labor xxxxx
Factory overhead xxxxx
Total Manufacturing Cost P1,000,000
Add : Work in Process Inventory, Jan. 1 xxxxx
Total Goods Placed in Process xxxxx
Less: Work in Process Inventory, Dec. 31 xxxxx
COST OF GOODS MANUFACTURED P970,000
Hmmm... how bout this?
1M + .4[ .75X + .27 (1M)] = 970,000 - (.75X + 270,000)
lalala, i know its wrong. im gettin confused...
or WIP Inventory, Jan. 1 first?
so is this right?
Total manufacturing cost 1,000,000
Add: WIP Inventory, jan. 1 20,000
Total Goods Placed in Process 1,020,000
Less: WIP inventory, dec. 31 50,000
COST OF GOODS MANUFACTURED 970,000
right?
oh btw... the P's are just peso signs...
I was asked to prepare a statement of cost of goods manufactured. I really can't analyze this problem. I kinda need a guide
a. Total Manufacturing cost during the year was P1,000,000, including direct materials, direct labor and factory overhead.
b. Cost of goods manufactured during the year was P970,000.
c. factory overhead charged to work in process was 75% of direct labor cost and 27% of the total manufacturing cost.
d. The beginning work in process inventory, january 1, was 40% of the ending work in process inventory, december 31.
Required: Prepare a statement of cost of goods manufactured for the year ended.
* i already tried it by setting up a statement of cost of goods manufactured and tried putting the given information at the appropriate spaces. But unfortunately, It's kinda algebraic and i really don't know how to start solving it.
Maybe like this?
Cost of direct materials xxxxx
Direct Labor xxxxx
Factory overhead xxxxx
Total Manufacturing Cost P1,000,000
Add : Work in Process Inventory, Jan. 1 xxxxx
Total Goods Placed in Process xxxxx
Less: Work in Process Inventory, Dec. 31 xxxxx
COST OF GOODS MANUFACTURED P970,000
Hmmm... how bout this?
1M + .4[ .75X + .27 (1M)] = 970,000 - (.75X + 270,000)
lalala, i know its wrong. im gettin confused...
or WIP Inventory, Jan. 1 first?
so is this right?
Total manufacturing cost 1,000,000
Add: WIP Inventory, jan. 1 20,000
Total Goods Placed in Process 1,020,000
Less: WIP inventory, dec. 31 50,000
COST OF GOODS MANUFACTURED 970,000
right?
oh btw... the P's are just peso signs...