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Computing Cost of Manufactured and Sold Goods
Compute the cost of goods manufactured and cost of goods sold for Strike Marine Company for the most recent year using the amounts described below. Assume that raw materials inventory contains only direct materials.
Raw materials inventory
$25,000
$28,000
Insurance on plant
$9,000
Work in process inventory
$50,000
$35,000
Depreciation plant building and equipment
$13,000
Finished goods inventory
$18,000
Repairs and maintenance
$4,000
Purchases of direct materials
$78,000
Marketing expenses
$77,000
Direct labor
$82,000
General and administrative expenses
$29,000
Indirect labor
$15,000
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