Answer to Question #226904 in Accounting for mafi

Question

selected data concerning the past year's operations of the awash mfg cor. are as follows

raw material beginning inventory 71000 end inventory 81000

work in process beginning inventory 80000 end inventory 30000

F/G beginning inventory 90000 end inventory 110000

Direct material used end inventory 326000

total mfg cost charged end inventory 686000

cost of goods av.for sale end inventory 826000

selling of admin exp end inventory 31500

instruction :determine

a.R.M purchased

b. cost of goods mfg

c.costs of goods sold

Answer 1

Solution:

a.). R.M purchased:

Raw materials purchased = Raw materials used + Ending raw materials inventory - Beginning raw materials inventory

= 326,000 + 81,000 – 71,000 = 336,000

Raw materials purchased = 336,000

 

b.). and c.). The cost of goods mfg  and costs of goods sold is calculated as per the below excel file: