Ask Question
23 September, 19:45

Champagne of the South, Inc., a manufacturer of bottled sweet tea, had the following beginning and ending inventories for the year ended December 31, 2013: January 1 December 31 Raw Materials Inventory * $10,000 $1 comma 702 Work in Process Inventory $17 comma 895 $17,000 Finished Goods Inventory $21,000 $16,500 *Raw Materials Inventory consists of both direct material and indirect material. During the year, direct labor costs of $30,000 were incurred, manufacturing overhead totaled $42,000, materials purchased were $27,000, and selling and administrative costs were $22,000. Champagne sold 25,000 units of product during the year at a sales price of $5.00 per unit. What were the total manufacturing costs for the year assuming $2 comma 129 of indirect materials were used during the period

+2
Answers (1)
  1. 23 September, 20:28
    0
    total manufacturing cost added for the period 105,169

    Cost of goods manufactured 106,064

    Cost of goods sold 110,564

    Explanation:

    First, we need to know the amount of direct materials used in production.

    beginning raw materials 10,000

    purchase 27,000

    ending (1,702)

    indirect materials (2,129)

    direct materials 33,169

    now, we calculate the cost added during the period

    direct materials 33,169

    direct labors 30,000

    overhead 42,000

    total cost added 105,169

    next step, we calculate the cost of goods manufactured from the WIP

    WIP 17,895

    added 105,169

    WIP ending (17,000)

    COGM 106,064

    And last, the cost of goods sold

    beginning finished goods 21,000

    COGM 106,064

    ending finished goods (16,500)

    COGS 110,564
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Champagne of the South, Inc., a manufacturer of bottled sweet tea, had the following beginning and ending inventories for the year ended ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers