papisreyna718
Jul 19, 2009, 03:11 PM
I can not seem to get this started even when I have read the chapter. Can someone help. I am truly not understanding this work. I need to prepare a statement of cost of goods manufactured and then a cost of goods sold section of the income statement. This is how the problem is laid out:
Sales... $75,000
Materials inv. (Jan 1)... 22,000
Work in process inv. (Jan 1)... 20,000
Finished goods inv. (Jan 1)... 30,000
Materials purchased... 21,000
Direct labor cost... 18,000
Factory overhead (including $1,000 of
Indirect materials used and $3,000 of
Indirect labor cost... 12,000
Selling & administrative exp... 10,000
Inventories @ Jan 31:
Materials... 25,000
Work in process... 24,000
Finished goods... 32,000
This is how its laid out but honestly I have no idea what to do or how to even start it. Not asking for the work to be done for me, I just do not understand how to start this out or for that matter which are the parts that I am needing to do the work. Is there anyone that can help me with getting this done or to understand what it is that I am asked to do... I am so lost, it is unreal. Thank you.:confused:
Sales... $75,000
Materials inv. (Jan 1)... 22,000
Work in process inv. (Jan 1)... 20,000
Finished goods inv. (Jan 1)... 30,000
Materials purchased... 21,000
Direct labor cost... 18,000
Factory overhead (including $1,000 of
Indirect materials used and $3,000 of
Indirect labor cost... 12,000
Selling & administrative exp... 10,000
Inventories @ Jan 31:
Materials... 25,000
Work in process... 24,000
Finished goods... 32,000
This is how its laid out but honestly I have no idea what to do or how to even start it. Not asking for the work to be done for me, I just do not understand how to start this out or for that matter which are the parts that I am needing to do the work. Is there anyone that can help me with getting this done or to understand what it is that I am asked to do... I am so lost, it is unreal. Thank you.:confused: