Question

Required information The following selected account balances are provided for Delray Mfg $1,250,000 37.000 53,900 Sales Raw materials inventory. beginning Hork in process inventory. beginning Finished goods Inventory beginning Raw materiale purchases Direct labor Factory supplen used (indirect materiale Indirect labor Repairs Factory equipment Rent coat of factory building Advertising expense General and administrative expenses Raw materials inventory ending Work in process Inventory. ending Finished goods inventory ending 62.750 175.600 225,000 17,840 47,000 5,250 57,000 94,000 129,300 ces 42,700 41,500 67,300 Prepare its schedule of cost of goods manufactured for the current year ended December 31. DELRAY MFG Schedule of Cost of Goods Manufactured For Year Ended December 31. Year 1 Direct materials: Raw materials available for use Direct materials used Factory overhead: Total factory overhead costs Total manufacturing costs lolol Total cost of work in process Cost of goods manufactured < Prev 105 of 6 m Next >

Answer 1

Solution

DELRAY MFG
Cost of Goods manufactured
For the year ended December 31, Year 1
Labels	Amount Descriptions	Amount Descriptions
Direct materials
Direct materials inventory, Beginning	$ 37,000
Direct materials purchases	$ 157,760
Cost of direct materials available for use	$ 194,760
Direct materials inventory, Ending	$ 42,700
Cost of direct materials placed in production		$ 152,060
Direct labor		$ 225,000
Factory overhead
Indirect Labor	$ 47,000
Factory Computer supplies used	$ 17,840
Repairs—Factory equipment	$ 5,250
Rent Expenses-Factory	$ 57,000
Total Factory Overheads		$ 127,090
Total Manufacturing Cost		$ 504,150
Add: Work in process inventory, Beginning		$ 53,900
Total work in process during the period		$ 558,050
Less: Work in process inventory,Ending		$ 41,500
Costs of good manufactured		$ 516,550

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DELRAY MFG
Income Statement
For the year ended December 31, Year 1
Sales		$ 1,250,000
Cost of Goods Sold
Beginning Finished Goods Inventory	$ 62,750
Cost of goods Manufactured	$ 516,550
Goods Available for sale	$ 579,300
Less: Ending Finished Goods Inventory	$ 67,300
Cost of Goods Sold		$ 512,000
Gross Profit		$ 738,000
Operating Expenses
General and Administrative expenses	$ 129,300
Selling Expenses
Advertisement Expenses	$ 94,000
Total Operating expenses		$ 223,300
Net Income		$ 514,700