We have three opening manufacturing cost Alpha, Beta, Gamma
Alpha 5000@ 0.35 = 1500
Beta 4000 @ 0.30 = 1000
Gamma 300@ 0.40 = 1200
3700
While calculating purchase we have
Alpha 35,000@0.35 = 12,250
Beta 10,000 @0.30 = 3,000
Gamma 8,000@ 0.60 = 4,800
2, 0050
Cost of Good sold statement:
Material Consumed
Direct material Opening inventory 3,700
Add: Net purchases 2, 0050
Material Available for Use 23,750
Less material closing stock 6,200
Direct Material consumed 17,550
Add: Direct labor 44,550
Prime cost 62,100
Add factory overhead cost (20% manufacturing cost 15,525
Total Manufacturing cost 77,625
This is Not 100% correct solution because its missing the WIP and finished good in entries in the question I did not find it so it is incomplete I dear you all find show plz share it
Sales 86,625
COGS 74,690
Gross profit 11,935
Less operating expanses:
Supplies 800
400 Repair and maintenance
Depreciation 350
Utilities 310
Insurance 280
Delivery expense 460
Period cost (5%) of sales 86625*5/100 4331.75
8,931.75
Net profit 3003.25
Over applied FOH 5,125
Adjusted Net profit 8,128
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