Homework answers / question archive / Minion Ltd, a manufacturer of soft-drink cans, had the following inventory balances at the beginning and end of the current year: Inventory account 1 January 31 December Raw material $144 000 $168 000 Work in process $288 000 $276 000 Finished goods $360 000 $396 000   During the year, the company purchased $600 000 of raw materials and spent $960 000 on direct labour

Minion Ltd, a manufacturer of soft-drink cans, had the following inventory balances at the beginning and end of the current year: Inventory account 1 January 31 December Raw material $144 000 $168 000 Work in process $288 000 $276 000 Finished goods $360 000 $396 000   During the year, the company purchased $600 000 of raw materials and spent $960 000 on direct labour

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Minion Ltd, a manufacturer of soft-drink cans, had the following inventory balances at the beginning and end of the current year:

Inventory account

1 January

31 December

Raw material

$144 000

$168 000

Work in process

$288 000

$276 000

Finished goods

$360 000

$396 000

 

During the year, the company purchased $600 000 of raw materials and spent $960 000 on direct labour. Manufacturing overhead costs were as follows:

 

Indirect materials

$24 000

Indirect labour

$60 000

Depreciation on plant and equipment

$240 000

Electricity

$60 000

Other

$72 000

 

Sales revenue was $2,652,000 for the year. Selling and administrative expenses for the year amounted to $264,000. The firm's tax rate is 40%.

 

Required:

 

a)   Prepare a schedule of costs of good manufactured.

 

[Answer and show workings here]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

b)   Prepare a schedule of cost of goods sold.

 

[Answer and show workings here]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Minion Ltd, a manufacturer of soft-drink cans, had the following inventory balances at the beginning and end of the current year:

Inventory account

1 January

31 December

Raw material

$144 000

$168 000

Work in process

$288 000

$276 000

Finished goods

$360 000

$396 000

 

During the year, the company purchased $600 000 of raw materials and spent $960 000 on direct labour. Manufacturing overhead costs were as follows:

 

Indirect materials

$24 000

Indirect labour

$60 000

Depreciation on plant and equipment

$240 000

Electricity

$60 000

Other

$72 000

 

Sales revenue was $2,652,000 for the year. Selling and administrative expenses for the year amounted to $264,000. The firm's tax rate is 40%.

 

Required:

 

a)   Prepare a schedule of costs of good manufactured.

 

[Answer and show workings here]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

b)   Prepare a schedule of cost of goods sold.

 

[Answer and show workings here]