Question

Axteks Corporation has the following cost records for the year ended December 31, 2020:

Indirect factory labour		$5,180
Direct materials used		252,700
Work in process (1/1/2020)		31,900
Work in process (12/31/2020)		25,800
Finished goods (1/1/2020)		35,300
Finished goods (12/31/2020)		29,200
Factory utilities		41,600
Depreciation, factory equipment		34,800
Direct labour		301,400
Indirect materials		22,300
Factory manager’s salary		63,100
Selling and administrative expenses		348,000
Net sales		1,233,000
Factory machinery rent		42,800

Prepare a cost of goods manufactured schedule for 2020. Axteks Corporation Cost of Goods Manufactured Year Ended December 31, 2020 Work in Process, January 1 31900 Direct Materials Used 252700 Direct Labour 301400 Manufacturing Overhead Indirect Factory Labour 5180 Factory Utilities 41600 Depreciation, Factory Equipment 34800 Indirect Materials 22300 Factory Manager's Salary 63100 Factory Machinery Rent 42800 Total Manufacturing Overhead 209780 Total Manufacturing Cost 763880 Total Cost of Work in Process 795780 Less . Work in Process, December 31 (25800) Cost of Goods Manufactured 769980

Answer 1

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Axteks Corporation
Answer a
Cost of goods manufactured	Amount $	Amount $	Amount $
Work in process inventory, Jan 1			31,900.00
Direct materials used		252,700.00
Direct manufacturing Labor		301,400.00
Manufacturing Overhead
Deprecation factory equipment	34,800.00
Indirect factory labor	5,180.00
Indirect materials used	22,300.00
Factory manager’s salary	63,100.00
Factory machinery rent	42,800.00
Factory utilities	41,600.00
Total Manufacturing Overhead		209,780.00
Total Manufacturing costs			763,880.00
Total cost of work in process			795,780.00
Less: Work in process inventory, Dec 31			25,800.00
Cost of goods manufactured			769,980.00
Answer b	Amount $	Amount $	Amount $
Income Statement
Net Sales			1,233,000.00
Cost of goods sold
Finished goods inventory, Jan 1	35,300.00
Cost of goods manufactured	769,980.00
Cost of goods available for sale	805,280.00
Less: Finished goods inventory, Dec 31	29,200.00
Cost of goods sold			776,080.00
Gross Profit			456,920.00
Selling and administrative expense			348,000.00
Net Profit/ Loss			108,920.00