Ray Corp.

Cost of Goods Manufactured and Sold Statement

For the Period ended 20x7

Rs. Rs. Rs
Direct Material .

Opening inventory 27,000

Add: Purchases 210,000

Add: Freight in 6,000 216,000

Material available for use 243,000
Less: Closing inventory (17,000)
Material Used 226,000
Add: Direct Labor 130,000
Prime cost 356,000
Add: Factory overhead (applied) 97,500
Total Factory cost/Manufacturing cost 453,500
Add: work in process opening inventory (29,500)
Cost of goods to be manufactured 483,000
Less: work in process closing inventory (13,000)
Cost of goods manufactured 470,000
Add: finished good opening inventory 25,000
Cost of goods available for sale 495,000
Less: finished good closing inventory (453,500)
Cost of goods sold (at normal) 41,500
Less: over applied factory overhead (19,100)
Cost of good (at actual) 22,400
Working Notes
Units Manufactured
Units sold 200
Add: closing finished good 300
500
Less: opening finished good (200)
300

Value of finished goods closing inventory

Per unit cost= cost of goods manufactured
Units manufactured
=453,500/300= 1512
1512*300= 453500

Calculation of gross profit

Sales(3900*200) 780000
Less: cost of goods sold (22,400)
Gross Profit 757,600
Actual Factory overhead
Indirect Material 13,400
Indirect Labor 60,000
Misc. F.O.H 5,000
78,400
Applied F.O.H (97,500)
Over applied F.O.H 19,100