Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Exercise 4-14 (Part Level Submission) Drew Corp. designs and manufactures mascot uniforms for high school, college, and professional sports teams. Since each teams uniform is
Exercise 4-14 (Part Level Submission)
Drew Corp. designs and manufactures mascot uniforms for high school, college, and professional sports teams. Since each teams uniform is unique in color and design, Drew uses a job order costing system. On January 1, the T-accounts for some of Drews primary balance sheet accounts were as follows:
Raw Materials Inventory | Work in Process Inventory | |||||||||||||
Beg. | 12,500 | Beg. | 31,000 | |||||||||||
Finished Goods Inventory | Cash | |||||||||||||
Beg. | 29,500 | Beg. | 40,700 | |||||||||||
Accounts Receivable | Accounts Payable | |||||||||||||
Beg. | 61,000 | Beg. | 42,000 | |||||||||||
During the year, the following events occurred:
1. | Drew purchased raw materials costing $89,200 on account. |
2. | Drew used $93,000 of raw materials in production. Of these, 70% were classified as direct materials and 30% as indirect materials. (Drew maintains a single Raw Materials Inventory account.) |
3. | Drew used 31,100 hours of direct labor. The companys average direct labor rate was $7.50 per hour (credit Wages Payable). |
4. | The companys only indirect labor cost was the salary of a security guard hired to watch the companys shop after hours. The guards annual salary was $29,000 (credit Wages Payable). |
5. | Other manufacturing overhead costs the company incurred on account totaled $70,000. |
6. | Drew applied $135,000 in manufacturing overhead. |
7. | The company completed production of goods costing $329,000. |
8. | The companys Cost of Goods Sold balance was $303,750 before adjusting for over- or underapplied overhead. (Do not adjust for over underapplied overhead.) |
9. | Sales revenue was $461,000 (all sales were made on account). |
10. | Drew collected $490,000 from customers. |
11. | The company paid accounts payable of $100,000. |
12. | At year-end, all wages earned during the year had been paid. |
QUESTION:
Calculate cost of goods available for sale during the year.Goods available for sale | $ ? |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started