Schedule Cost of goods manufactured and cost of goods sold
I am taking my first class in Accounting and I am having difficulties with my homework.
I have the following problem, that I have done in several ways and I always get an answer that is greater that the correct one. These are the figures (in thousands of dollars):
Direct Labor Cost: $10,500
Purchase of Materials: 15,000
Supplies used: 675
Factory Insurance: 350
Advertising: 800
Material Handling: 3,745
Work-in-process inventory, 12/31/2003: 12,500
Work-in-process inventory, 12/31/2004: 14,250
Material Inventory, 12/31/2003: 3,475
Material Inventory, 12/31/2004: 9,500
Finished goods inventory, 12/31/2003: 6,685
Finished goods inventory, 12/31/2004: 4,250
1. Prepare a statement of cost of goods manufactured. (Correct answer is 24720, my answer is 29780)
2. Prepare a statement of cost of goods sold. (Correct answer is 27155, my answer