Question

Cornerstone 2.2 Refer to Cornerstone Exercise 2.1. For next year, Pietro predicts that 50,000 units will be produced, with the following total costs: Direct materials Direct labor Variable overhead Fixed overhead $60,000 25,000 220,000 Next year, Pietro expects to purchase $119,300 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Direct Materials Inventory $5,600 4,900 Work-in-Process Inventory $12,500 4,600 Beginning Ending Required: 1. Prepare a statement of cost of goods manufactured in good form.

Answer 1

Cost of goods manufactured schedule

Direct material, beginning	5,600
Purchases of direct materials	119,300
Direct material, ending	- 4,900
Direct materials consumed	120,000
Direct labor	60,000
Variable overhead	25,000
Fixed overhead	220,000
Work in process, beginning	12,500
Work in process, ending	- 14,600
Cost of goods manufactured	$422,900

Kindly give a positive rating if you are satisfied with the answer. Feel free to ask if you have any doubts. Thanks.