On 30 June 2013 ABC Ltd showed following actual costs for the financial year just ended: Direct material used $450 000 Direct labour 200 000 Manufacturing overhead 400 000 The companys planned overhead rate is 150% of direct labour cost. The balances of inventory on 1 July 2012 were as follows: Raw material $50 000 Work in process 65 000 Finished goods 71 000 Each of those inventory balances was 10% lower on 30 June 2013. Required: (a) Prepare a Schedule of Cost of Goods Manufactured for the financial year; (5 marks) (b) Calculate the Cost of Goods Sold for the financial year. (5 marks)

(A)

Direct material:

Raw material inventory

Add: Purchase of raw material

Raw material available for use

Deduct: Raw material inventory

Raw material used

Direct labour

Manufacturing overhead

Total manufacturing costs

Add: work in process inventory

Subtotal

Deduct: work in process inventory

Costs of goods manufactured

b)

Finished goods inventory

Add: Cost of goods manufactured

Cost of goods available for sale

Deduct: Finished goods inventory

Cost of goods sold