Exercise 2-34 Name:
Enter the appropriate amounts in the gray-shaded cells of columns E and F. Enter amounts
to be subtracted as negatives. If an answer is incorrect, the word “wrong” will appear.
a. Targé Co.
Cost of Goods Sold Schedule
For the Month Ended March 31, 2013
Beginning finished goods inventory 125,000$
Cost of goods manufactured 2,537,500
Cost of goods available for sale 2,662,500$
Less: Ending finished goods inventory (18,400)
Cost of goods sold 2,644,100$
b. Targé Co.
Cost of Goods Manufactured Schedule
For the Month Ended March 31, 2013
Beginning work in process inventory 90,000$
Direct material:
Beginning direct material inventory 30,000$
Direct material purchased 1,182,000
Direct material available 1,212,000$
Less: Ending direct materials inventory
(42,000)
Direct materials used in production 1,170,000$
Direct labor cost 400,000
Total overhead cost 900,000
Total cost to account for 2,560,000$
Less: Ending work in process inventory (22,500)
Cost of goods manufactured 2,537,500$
c. Prime Cost
Direct materials 1,170,000$
Direct labor 400,000
Total prime cost 1,570,000$
d. Conversion Cost
Direct labor 400,000$
Overhead 900,000
Total conversion cost 1,300,000$
Solution