The following balances are from the accounts of Tappan Parts: January 1 (Beginning) December 31 (Ending) Direct materials inventory

The following balances are from the accounts of Tappan Parts: January 1 (Beginning) December 31 (Ending) Direct materials inventory $ 21,800 $ 24,600 Work-in-process inventory 32,300 29,200 Finished goods inventory 5,500 6,500 Direct materials used during the year amount to $46,000 and the cost of goods sold for the year was $52,700. Required: Prepare a cost of goods sold statement.

Tappan Parts: Cost of goods sold statement: Beginning inventory: Direct materials $21,800 WIP 32,300 Finished goods 5,500 Total $59,600 Purchases of materials 53,400 Available $113,000 less Ending inventory: Direct materials $24,600 WIP 29,200 Finished goods 6,500 Total $60,300 Cost of goods sold $52,700 Explanation: a) Data and Calculations: January 1 (Beginning) December 31 (Ending) Direct materials inventory $ 21,800 $ 24,600 Work-in-process inventory 32,300 29,200 Finished goods inventory 5,500 6,500 Direct materials used during the year amount to $46,000 and the cost of goods sold for the year was $52,700 b) The missing figure in the above statement is the purchases of raw materials. This is determined by adding the cost of goods sold to the ending inventory of raw materials, work in process, and finished goods. This gives the cost of raw materials, WIP, and finished goods available for sale. Then the beginning inventories of raw materials, WIP, and finished goods are deducted to obtain the amount of purchases of materials made during the period.

Also Read :   Which of the following statements is true of organizations that practice the entitlement approach?

answer; // there are violations that can cause injuries or death;

Is this supposed to be a question or a protest

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