Name: Muhammad Kashif Raheem

Reg No: 52412

Faculty: Sir Naveed Alam

Cost of goods sold statement 

For the year ended December 31,19B

Particulars  Amount in $
Beginning materials  176,000 
Purchases 2,400,500
Freight in 3200
Cost of materials available for use  2,579,700
Ending materials  (196,000) 
Direct materials used  2,383,700
Direct labor cost  3,204,000
Factory overhead  1,885,600
Total manufacturing cost  7,443,300
Add. Beginning WIP  129,800 
Total work put into process  7,573,100
Less  Ending WIP  (136,800) 
Cost of goods manufactured  7,436,300
Add. Beginning finished goods  620,000
Cost of goods available for sale  8,056,300
Less. Ending finished goods  (467,400) 
Cost of goods sold  7,588,900

1) Total manufacturing cost=7,443,300

2) Cost of goods manufactured=7,436,300

3) Cost of goods sold=7,588,90

Yukon refrigerator company

Answer 1  

Sales  6634000
Less: Cost of Goods Sold (Note -1) 4901500
Gross Profit 1732500
Sellling Expenses:  
Marketing 516000
Administrative Expenses:  
General and Administrative Expenses 461000
   
Net Profit 755000

Answer 2    

Sale unit of Refrigertors 12400  

Add:-Closing Finished stock 200  
Less:-Opening Finished Stock 100  
Number of Unit Manufactured 12500  
 

Answer 3    

Material Consumed    
Opening stock of Material  268000  
Add:-Purchase of Material 1946700  
Less:-Closing Stock of material 167000 2047700
Direct Labour   2125800
Factory Overheads    764000
Total cost of Manufactured(A)   4937500
Number of Unit Manufactured(B)   12500
Unit cost of Refrigerators Manufactured(A/B)   395
 
Answer 4    

Computation of Gross Profit Per unit sold

Gross Profit(A) 1732500  

Number of Unit Sold(B) 12400  

Gross Profit Per unit sold

(A/B) 139.7177

THE FLORIDA COMPANY:

Answer 1:

Factory Overhead Applied = $50,000

Note:

Factory Overhead Applied = Total Labor hours x Overhead rate

Factory Overhead Applied = 6,250 hours x $8 = $50,000

Answer 2:

Conversion Cost
= $90,000

Note:

Conversion Cost = Direct Labor cost + Factory overhead applied

Conversion Cost = $40,000 + $50,000 = $90,000

 Answer 3:
Net Income from Operations
= $31,000

Note:

Cost of goods manufactured

Work in process inventory, October 1   $12,000

Direct Materials    
  Materials Inventory, October 1 $24,000  
  Add: Materials Purchased 56,000  
  Cost of raw materials available for use 80,000  
  Less: Materials inventory, October 31 20,000  
  Raw Materials Used    60,000
Direct Labor cost   40,000
Factory Overheads applied   50,000
Total cost of work in process   162,000
Less: Work in process inventory,
  8,000
October 31
Cost of goods manufactured   $154,000

Cost of goods sold

Finished goods inventory, October 1 $35,000

Add: Cost of goods manufactured 154,000
Less: Finished goods inventory, October
40,000
31
Cost of goods sold $149,000

Net Income from operations

Net Sales  $200,000

Less: Cost of goods sold 149,000
Gross Profit 51,000
Less: Marketing and administrative expenses ($200,000 x
20,000
10%)
Net Income from operations $31,000

----------The End---------
Page 12 of 46
Composed By: Hazratullah Ihsas Arab
Raw materials (opening inventory)
88,000.00
Add: Net purchases
Materials purchased 366,000.00
+ Freight on materials purchased
6,600.00
372,600.00
Raw material available for use
460,600.00
Less: Raw materials (closing
inventory) (64,000.00)
Raw materials consumed 396,600.00
Add: Direct labor 523,600.00
Prime cost 920,200.00
Add: Factory overhead cost
Factory overhead 468,400.00
+ Depreciation (116000*90%)
104,400.00
572,800.00
Total manufacturing cost
1,493,000.00
Add: Work in process (opening
inventory) 29,800.00
Cost of goods to be manufactured
1,522,800.00
Less: Work in process (closing
inventory) (38,800.00)
Cost of goods manufactured
1,484,000.00
Add: Finished goods (opening
inventory) 44,200.00
Cost of goods available for sale
1,528,200.00
Less: Finished goods (closing
inventory) (66,000.00)
Cost of goods sold 1,462,200.00
Metaxen Company
Cost of Goods Sold Statement
For the period ended: Dec 31, 19--

Sales 1,844,000.00
- Sales discount (8,000.00)
Net sales 1,836,000.00
Less: Cost of goods sold
(1,462,200.00)
Gross income 373,800.00
Less: Operative expenses
Depreciation (116000*10%)
11,600.00
Marketing & administrative expenses
344,200.00
Interest on bonds payable 16,000.00
(371,800.00)
Operative income 2,000.00
Add: Other income
Rental income 64,000.00
Net income 66,000.00
Metaxen Company
Income Statement
For the period ended: Dec