Answer and Explanation:
The preparation of the cost of goods sold statement is presented below;
Crabtree Machining Company
Cost of goods sold statement
Beginning work in Process $139,200
Manufacturing Costs
Direct Material:
Beginning Direct Material inventory $115,200
Direct material purchases $717,600
Materials available $832,800
Less: Ending Direct Material inventory - $141,600
Direct Material used $691,200
Conversion costs ($2,592,960 -$691,200) $1,901,760 (Balancing figure)
Total Manufacturing costs ($2,732,160 - $139,200) $2,592,960
Total cost of Work in process ($2,597,760 + $134,400) $2,732,160
Less: ending inventory Work in Process $134,400
Cost of goods manufactured ($2,714,880 -,$117,120) $2,597,760.
Beginning finished goods inventory $117,120
Finished goods savailable for sale ($2,606,880 + $108,000) $2,714,880
Less: Ending finished goods inventory $108,000
Cost of goods sold $2,606,880
