Question
On 30 June 2020 Smalls Ltd showed following actual costs for the financial year just ended: Direct material used $300 000 Direct labour 250 000
On 30 June 2020 Smalls Ltd showed following actual costs for the financial year just
ended:
Direct material used $300 000
Direct labour 250 000
Manufacturing overhead 298 000
The company's planned overhead rate is 120% of direct labour cost. The balances of
inventory on 1 July 2019 were as follows:
Raw material $30 000
Work in process 40 000
Finished goods 50 000
Each of those inventory balances was 20% higher on 30 June 2020.
Required:
(a) Prepare 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)
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