8/9/2019 CMA Lesson 1 Cogs and Income Statement

1/2

https://www.facebook.com/groups/CMA4ALL.ARMAN/

EDUCATION4ALL-ARMAN.BLOGSPOT.COM

ARMAGHAN AHMED

LESSON NO 1

QUESTION COST OF GOODS MANUFACTURED

INVENTORY for the year ending 2011

2010 2011 MATERIAL USED

RAW MAT 10,000 12,000 RAW MAT BEG 10,000WORK IN PROCES 20,000 23,000 PURCHASES 320,000

FINISHED GOODS 30,000 36,000 RETURNS (10,000)

310,000

OTHER DATA ADD TRANSP COST 25,000 335,000

PURCHASES 320,000 MATERAL AVAIL FOR USE 345,000

RETURNS 10,000 LESS END INVENTORY (12,000)

TRANSPORTAION COST 25,000 MATERIAL USED 333,000

LABOR COST 150,000 LABOR COST 150,000

OVERHEAD 200,000 conversion cost OVERHEAD COST 200,000

SELLING EXP 30000 T.MANUFACTURING COST 683,000

ADMIN EXP 40000 ADD WORK IN PROCESS BEG 20,000

DISTRIBUTION EXP 1000 LESS WORK IN PROCESS END (23,000)

INTEREST EXP 25000 Tr 2 F/G Inv COST OF GOODS MANUFACTURE 680,000

TAX 30000 ADD FINISHED GOODS BEG 30,000

LESS FINISED GOODS END (36,000)

REQUIREMENT COST OF GOODS SOLD 674,000PREPARE COST OF GOODS SOLD STATEMNT

PREPARE INCOME STATEMENT

INCOME STATEMENTSALES 1,000,000 1,000,000

F/G BEG 30,000 30,000

ADD COST OF GOODS MANUF 680,000 1 CL INV INCREASE 680,000 3 PROFIT INCR

LESS F/G END (36,000) (136,000)

COST OF GOODS SOLD (674,000) (574,000)

GROSS PROFIT 326,000 426,000

SELLING AND ADMING EXP

SELLING EXP 30,000

ADMIN EXP 40,000 2 COS DECR

DISTRIBUTION EXP 1,000EBIT 255,000

INTEREST EXP 25,000

EBT 230,000

TAX 30,000

NET INCOME 200,000

prime cost

COST OF GOODS SOLD AND INCOME STATEMENT

8/9/2019 CMA Lesson 1 Cogs and Income Statement

2/2

https://www.facebook.com/groups/CMA4ALL.ARMAN/

EDUCATION4ALL-ARMAN.BLOGSPOT.COM

PRACTICE QUESTION

2010 2011

RAW MAT 50,000 60,000

WORK IN PROCESS 40,000 35,000

FINISHED GOODS 50,000 40,000

PURCHASES 1,000,000

RETURNS 50,000

TRANSPORTAION COST 50,000

LABOR COST 500,000

OVERHEAD 400,000