Information for Maxim Manufacturing Is Presented Below

question 190

Essay

Information for Maxim Manufacturing is presented below. Compute both the cost of goods manufactured and the cost of goods sold for Maxim Manufacturing.
$$\begin{array} { | l | r | } \hline \text { Beginning raw materials inventory } & \$ 36,800 \\\hline \text { Beginning work in process inventory } & 21,200 \\\hline \text { Direct labor } & 81,00 \\\hline \text { Beginning finished goods inventory } & 64,000 \\\hline \text { Total factory overhead } & 126,000 \\\hline \text { Raw materials purchased } & 21,500 \\\hline \text { Ending raw materials inventory } & 40,000 \\\hline \text { Ending work in process inventory } & 20,000 \\\hline\text { Ending finished goods inventory } & 46,000\\\hline\end{array}$$

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Definitions:

Cash Receipts

The total amount of money, including cash, checks, and credit card payments, received by a business during a given period.

Internal Control Procedures

Processes implemented by a company to ensure integrity of financial and accounting information, promote accountability, and prevent fraud.

GAAP

GAAP stands for Generally Accepted Accounting Principles, which are standardized guidelines and practices for financial accounting and reporting in the U.S.

IFRS

International Financial Reporting Standards, a set of accounting guidelines that provide a global framework for businesses to prepare and disclose their financial statements.