Schedule of Cost of Goods Manufactured

Case A Case B
Opening stock of raw materials $120,000 $60,000
Add: Purchases of raw materials $200,000 $255,000
Raw materials cost available for consumption $320,000 $315,000
Less: Closing stock of raw materials $180,000 $30,000
Cost of raw materials consumed $140,000 $285,000
Direct labour $400,000 $300,000
Prime Cost $540,000 $585,000
Add: Manufacturing Overheads $500,000 $450,000
Manufacturing cost incurred during the period $1,040,000 $1,035,000
Add: Beginning inventory of WIP $70,000 $60,000
Less: Closing Inventory of WIP $60,000 $105,000
Factory cost or Inventoriable cost $1,050,000 $990,000

Income Statement
Sales $1,600,000 $1,500,000

Beginning inventory of finished goods $100,000 $120,000

Add: Inventoriable costs $1,050,000 $990,000
Cost of goods available for sale $1,150,000 $1,110,000
Less: Ending inventory of finished goods $60,000 $120,000
Cost of Goods Sold (COGS) $1,090,000 $990,000

Gross Margin $510,000 $510,000

Less: Period Costs

Selling & Administrative expenses $210,000 $225,000

Income before tax (EBIT) $300,000 $285,000

Income Tax $80,000 $135,000

Net Income (PAT) $220,000 $150,000

 Case C
$7,500
$35,000
$42,500
$15,000
$27,500
$62,500
$90,000
$80,000
$170,000
$7,500
$2,500
$175,000

$240,000

$10,000
$175,000
$185,000
$12,500
$172,500

$67,500

$22,500

$45,000

$17,500

$27,500