Reference no: EM132730602

Question - Golden Yellow Manufacturing Company has a cycle time of 5 days, uses Raw and in process account and charges all conversion costs to Cost of Sales. At the end of each period, all inventories are counted, their conversion costs components are estimated and inventory account balances are adjusted. The following data is available for the current period:

RIP, beg. balance including 5,000 of conversion costs 24,000

FG, beg. balance including 12,000 of conversion costs 40,000

Raw materials purchases on account 700,000

RIP, end balance including 7,500 of conversion costs 30,000

FG, end balance including 8,000 of conversion costs 42,000

Conversion costs for the period are 250,000 for direct labor and 350,000 for overhead

Required -

a) Determine the cost of goods manufactured for the year?

b) Determine the cost of sales for the period?