Start the calculation for cost of goods manufactured by calculating the direct materials used. East Aquatic Company Calculation of Direct Materials Used For Current Year Beginning raw materials inventory 28,000 Plus: Purchases of direct materials 74,000 Materials available for use 102,000 Less: Ending raw materials inventory 32,000 70,000 Direct materials used Calculate the cost of goods manufactured. East Aquatic Company Calculation of Cost of Goods Manufactured For Current Year Plus: Manufacturing costs incurred (2) Less: (6) Cost of goods manufactured Now calculate the cost of goods sold. East Aquatic Company Calculation of Cost of Goods Sold For Current Year 74,000 Plus: Purchases of direct materials Materials available for use Less: Ending raw materials inventory 102,000 32,000 70,000 Direct materials used Calculate the cost of goods manufactured. East Aquatic Company Calculation of Cost of Goods Manufactured For Current Year Plus: Manufacturing costs incurred (2) Less: (6) Cost of goods manufactured Now calculate the cost of goods sold. East Aquatic Company Calculation of Cost of Goods Sold For Current Year Plus: (8) (9) Less: (10) Cost of goods sold Beginning End of of Year Year Raw materials inventory .......$ 28,000 $ 32,000 Insurance on plant........ ......$ Work in process inventory ......$ 38,000 $ 36,000 Depreciation-plant building and equipment .... $ Finished goods inventory ......$ 20,000 $ 23,000 Repairs and maintenance plant................$ Purchases of direct materials .... $ 74,000 Marketing expenses .........$ Direct labor 88,000 General and administrative expenses........$ Indirect labor... 39,000 End of Year 7,500 13,400 3,700 84,000 28,500 East Aquate Company Caution of Direct Matera Used For Current Year Beginning raw materials inventory 32 000 Loss Ending raw materia inventory $ 70.000 D Cac ed the cost of goods manufactured East Aquatic Company Calculation of Cast of Goods Manufactured For Cument Year Plus Manufacturing costs incurred Cost of goods manufactured Now the cost of goods sold East Company Canon of Cost of Goods Sold For Current Year Cost of goods Being End of End of 2 m o ry......... Work in process inventory...... Finished goods in .000 32.000 eurance on plant.... ........................5 7.500 38,000 $30,000 Depreciation-pant building and equipment.... 13.400 20.000 $ 23.000 Heard an d plant.. .........$ 3700 534000 3 .000 Geers and administrative expenses........5 23.500 30.000 Director direct labor