Question

Magic Lady Clean A Magical The Problem: Show all you work. From the account balances listed below, prepare a schedule of cost of goods manufactured Sampson Manufacturing Company for the month ended December 31, 2016 Account Balances $42,000 Finished Goods Inventory, December 31 Factory Supervisory Salaries Income Tax Expense Raw Materials Inventory, December 1 Work In Process Inventory, December 31 Sales Salaries Expense Factory Depreciation Expense Finished Goods Inventory, December 1 Raw Materials Purchases Work In Process Inventory, December 1 Factory Utilities Expense Direct Labor Raw Materials Inventory, December 31 Sales Returns and Allowances Indirect Labor 12,000 18,000 12,000 15,000 14,000 8,000 35,000 105,000 25,000 6,000 70,000 19,000 Began 5,000 21.000

Answer 1

		SCHEDULE OF COST OF GOODS MANUAFACTURED
		RAW MATERIALS COSTS
	A	Beginning Raw materials inventory Dec,1	$12,000
	B	Raw Materials Purchases	$105,000
	C	Ending Raw material inventory Dec31	$19,000
	D=A+B-C	Raw materials used	$98,000
		FACTORY OVERHEAD COSTS
		Factory Supervisory Salaries	$12,000
		Factory Depreciation expense	$8,000
		Factory Utilities expenses	$6,000
		Indirect labor	$21,000
		Total Overhead expenses	$47,000
		WORK IN PROCESS INVENTORY
	E	Beginning Work in Process Inventory, Dec1	$25,000
		Manufacturing costs incurred
	F	Raw materials cost	$98,000
	G	Direct Labor Costs	$70,000
	H	Factory Overhead Costs	$47,000
	I=F+G+I	Total manufacturing costs incurred	$215,000
	J	Ending Work in Process Inventory, Dec31	$15,000
	K=E+I-J	COST OF GOODS MANUFACTURED	$225,000