Question

What is the cost of goods manufactured?

Required information Use the following information for the Exercises below. The following selected account balances are provided for Delray Mfg. $ Sales Raw materials inventory, beginning Work in process inventory, beginning Finished goods inventory, beginning Raw materials purchases Direct labor Factory supplies used (indirect materials) Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and administrative expenses Raw materials inventory, ending Work in process inventory, ending Finished goods inventory, ending 1,272,000 38,000 52,000 63,500 180, 200 247,000 15,100 46,000 5,250 53,000 81,000 143,000 44,600 41,100 69, 100

Answer 1

Schedule of cost of goods manufactured

Raw Material, Beginning	38,000
Raw material purchased	180,200
Raw material available for use	218,200
Raw material, Ending	-44,600
Direct material used	173,600
Direct labor	247,000
Factory overheads :
Factory supplies used	15,100
Indirect labor	46,000
Repairs - factory equipment	5,250
Rent - factory	53,000
Total manufacturing cost	529,450
Work in process, Beginning	52,000
Work in process, Ending	-41,100
Cost of goods manufactured	$540,350

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