Cost of Goods Manufactured, Cost Identification, Solving for Unknowns

Allright Test Design Company creates, produces, and sells Internet-based CPA and CMA review courses for individual use. Davis Webber, head of human resources, is convinced that question development employees must have strong analytical and problem-solving skills. He asked Andrea Lee, controller for Allright Test Design, to help develop problems for use in screening applicants before they are interviewed. One of the problems Andrea developed is based on the following data for a mythical company (Mythic, Inc.) for the previous year:

1. Conversion cost was $131,000 and was four times the prime cost.
2. Direct materials used in production equaled $4,200.
3. Cost of goods manufactured was $151,300.
4. Ending work in process is 30 percent of the cost of beginning work in process.
5. There are no beginning or ending inventories for direct materials.
6. Cost of goods sold was 110 percent of cost of goods manufactured.
7. Beginning finished goods inventory was $22,530.

Required:

1. Using the given information, prepare a cost of goods manufactured statement.

Mythic, Inc. Statement of Cost of Goods Manufactured For the Previous Year

Direct materials $____

Direct labor ____

Manufacturing overhead _____

Total current manufacturing costs $______

Add: Beginning work in process ____

Less: Ending work in process ____

Cost of goods manufactured $___

2. Using the given information, prepare a cost of goods sold statement.

Mythic, Inc. Statement of Cost of Goods Sold For the Previous Year

Cost of goods manufactured	$___
Add: Beginning finished goods	____
Cost of goods available for sale	$___
Less: Ending finished goods	___
Cost of goods sold	$____