Question

Begin by preparing the supporting schedule of cost of goods manufactured​ (in millions). Start with the direct materials and direct labor​ costs, then indirect manufacturing​ costs, and complete the schedule by calculating cost of goods manufactured.

Classic Corporation
Schedule of Cost of Goods Manufactured
For the Year Ended December 31, 2017 (in millions)
Direct material costs:
Direct materials used
Direct labor manufacturing costs

ClassicClassic​'s

manufacturing costing system uses a​ three-part classification of direct​ materials, direct manufacturing​ labor, and manufacturing overhead costs.

For Specific Date			For Year 2017
Work-in-process inventory, Jan. 1, 2017	$11		Plant utilities	$3
Direct materials inventory, Dec. 31, 2017	6		Indirect manufacturing labor	20
Finished-goods inventory, Dec. 31, 2017	14		Depreciation—plant and equipment	4
Accounts payable, Dec. 31, 2017	23		Revenues	357
Accounts receivable, Jan. 1, 2017	56		Miscellaneous manufacturing overhead	12
Work-in-process inventory, Dec. 31, 2017	2		Marketing, distribution, and customer-service costs	92
Finished-goods inventory, Jan 1, 2017	44		Direct materials purchased	90
Accounts receivable, Dec. 31, 2017	38		Direct manufacturing labor	43
Accounts payable, Jan. 1, 2017	50		Plant supplies used	7
Direct materials inventory, Jan. 1, 2017	37		Property taxes on plant	5

Answer 1

Classic Corporation Schedule of Cost of Goods Manufactured For the Year Ended December 31, 2017 (in millions)
Direct material inventory,Jan 1 2017	37
Direct material purchased	90
Direct material available for use	127
Direct material inventory ,Dec 31 2017	(6)
Direct material used		121
Direct manufacturing labor		43
Manufacturing overhead
Plant utilities	3
Indirect manufacturing labor	20
Depreciation -plant and equipment	4
Plant supplies used	7
Property taxes on plant	5
Miscellaneous manufacturing overhead	12
Total manufacturing overhead		51
Total manufacturing cost incurred during the period		215
Work in process inventory ,Jan 1		11
		226
Work in process inventory ,Dec 31		(2)
Cost of goods manufactured		224