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    tamimi's Avatar
    tamimi Posts: 4, Reputation: 1
    New Member
    		  
    #1

    Jun 6, 2010, 10:04 AM
    Prepare a statement of the cost of goods manufactured
    COGM and COGS
    Selected data concerning the past year’s operations of the Karl Enterprises are as follows:

    Selling and administrative expenses $75,000
    Direct materials used. 265,000
    Direct labor (25,000 hours) 300,000
    Factory overhead application rate 20 per DLH

    Inventories
    Beginning Ending
    Direct materials $40,000 $45,000
    Work in process. 95,000 90,000
    Finished goods. 35,000 25,000

    Required:
    (a) Prepare a statement of the cost of goods manufactured.
    (b) Determine the value of COGS (show your work).
    Clough's Avatar
    Clough Posts: 26,677, Reputation: 1649
    Uber Member
    		  
    #2

    Jun 6, 2010, 02:51 PM
    Quote Originally Posted by tamimi View Post
    COGM and COGS
    Selected data concerning the past year’s operations of the Karl Enterprises are as follows:

    Selling and administrative expenses $75,000
    Direct materials used. 265,000
    Direct labor (25,000 hours) 300,000
    Factory overhead application rate 20 per DLH

    Inventories
    Beginning Ending
    Direct materials $40,000 $45,000
    Work in process. 95,000 90,000
    Finished goods. 35,000 25,000

    Required:
    (a) Prepare a statement of the cost of goods manufactured.
    (b) Determine the value of COGS (show your work).
    Hi, tamimi!

    I'm not sure what your question is here...

    Are you looking for someone to do the work for you, or for someone to come along and teach you how to come up with the correct responses yourself, please?

    If the former is true, please click on the following link to read the announcement there.

    https://www.askmehelpdesk.com/financ...-b-u-font.html

    Thanks!
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #3

    Jun 7, 2010, 03:52 AM

    A statement of COGM is very difficult to give hints on or describe in a forum situation like this, but there's an example of one here:
    Principles of Accounting Chapter 17

    If you have any part of it already done and post it, we can at least give you some guidance from there.
    OmerAlvi's Avatar
    OmerAlvi Posts: 1, Reputation: 1
    New Member
    		  
    #4

    Jul 18, 2012, 05:49 AM
    Opening Inventory of Raw Material 40,000
    Add: Raw material purchased xxx
    Transportation/Freight in xxx
    Less: Purchase Return (xxx)
    Purchase discount (xxx)
    =Raw material Available for use xxx xxx
    Less: Closing Inventory of Raw material (xxx)
    Direct raw material consumed/used 265,000
    Add:Direct Labour 300,000
    =Prime cost =565,000
    Add: Factory Overheads (FOH) 500,000
    =Manufacturing Cost for the period =1,065,000
    Add: Opening WIP 95,000
    =Total Cost of WIP =1,160,000
    Less: Closing WIP (90,000)
    =COGM =1,070,000


    COGS Statement
    Opening Balance of Finished Goods 35,000
    Add: COGM 1,070,000
    =Finished Goods available for Sale =1,105,000
    Less: Closing Inventory of Finished Goods (25,000)
    =COGS =1,080,000
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