Computing Cost of Manufactured and Sold Goods
Compute the cost of goods manufactured and cost of goods sold for Strike Marine Company for the most recent year using the amounts described below. Assume that raw materials inventory contains only direct materials.
|
Raw materials inventory
|
$25,000
|
$28,000
|
Insurance on plant
|
$9,000
|
|
Work in process inventory
|
$50,000
|
$35,000
|
Depreciation plant building and equipment
|
$13,000
|
|
Finished goods inventory
|
$18,000
|
$25,000
|
Repairs and maintenance
|
$4,000
|
|
Purchases of direct materials
|
|
$78,000
|
Marketing expenses
|
$77,000
|
|
Direct labor
|
|
$82,000
|
General and administrative expenses
|
$29,000
|
|
Indirect labor
|
|
$15,000
|
|
|