Question

Beck Manufacturing reports the account information below for 2017. Using this information:

1. Prepare the schedule of cost of goods manufactured for the year.

2. Compute cost of goods sold for the year.

Raw Materials Inventory

Begin. inv. 10,000

Purchases 45,000

Avail. for use 55,000

End. inv. 8,500 DM used 46,500

Work in Process Inventory

Begin. inv. 14,000

DM used 46,500

Direct labor 27,500

Overhead 55,000 Avail. for mfg. 143,000

End. inv. 12,000 Cost of goods mfg. 131,000

Finished Goods Inventory

Begin. inv. 16,000

Cost of goods mfg. 131,000

Avail. for sale 147,000 Cost of goods sold 129,000

End. inv. 18,000

Short answer

The cost of goods manufactured is computed as $131,000 and the cost of goods sold is computed as $129,000

Step-by-step solution

Preparation of schedule of cost of goods manufactured (1)

Schedule of Cost of goods manufactured
	Amount ($)
Direct Material	46,500
Direct Labor	27,500
Applied Manufacturing	55,000
Total manufacturing cost	129,000
Add: Beginning Work in process	14,000
Less: Ending Work in process	12,000
Cost of goods manufactured	131,000

Computation of cost of goods sold (2)

Schedule of Cost of goods manufactured
	Amount ($)
Finished goods at beginning	16,000
Add: Cost of goods manufactured	131,000
Cost of goods for sale	147,000
Less: finished goods at the end	18,000
Cost of goods sold	129,000