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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
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]
Expert Solution
| MINION LTD. | ||
| SCHEDULE OF COST OF GOODS MANUFACTURED | ||
| FOR YEAR ENDED DECEMBER 31, 20x1 | ||
| $ | $ | |
| Direct materials: | ||
| Raw materials inventory, January 1, 20x1 | 144000 | |
| Add: Raw materials purchases | 600000 | |
| Raw materials available for use | 744000 | |
| Less: Raw materials inventory, December 31,20x1 | 168000 | |
| Direct materials used | 576000 | |
| Direct labor | 960000 | |
| Manufacturing Overhead: | ||
| Indirect Material | 24000 | |
| Indirect labor | 60000 | |
| Depreciation on Plant & Equipment | 240000 | |
| Electricity | 60000 | |
| Others | 72000 | |
| Total factory overhead costs | 456000 | |
| Total manufacturing costs | 1992000 | |
| Add: Work in process inventory, January 1, 20x1 | 288000 | |
| Total cost of work in process | 2280000 | |
| Less: Work in process inventory, December 31, 20x1 | 276000 | |
| Cost of goods manufactured | 2004000 | |
| MINION LTD. | ||
| Schedule of cost of goods sold | ||
| For Year Ended December 31, 20X1 | ||
| $ | ||
| Beginning Finished Goods | 360000 | |
| Cost of goods manufactured | 2004000 | |
| Cost of goods available for sale | 2364000 | |
| Less: Ending Finished Goods | 396000 | |
| Cost of Goods Sold | 1968000 | |
Note: You have posted the same question two times. So, i have answered the question.
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