Question

Vaughn Company produces small gasoline-powered engines for model airplanes. Mr. Clemens, Vaughn's CFO, has presented you with the following cost information: Direct Materials Inventory, beginning $ 86,000 Direct Materials Inventory, ending $ 130,000 Work in Process Inventory, beginning $ 149,000 Work in Process Inventory, ending $ 99,000 Direct labor $ 758,000 Direct materials purchases $971.000 Insurance, factory $ 58,600 Depreciation, factory $ 24,100 Depreciation, executive offices $ 10,900 Indirect labor $ 216,000 Utilities, factory $ 15,600 Utilities, executive offices $ 8,200 Property taxes, factory $ 16,300 Property taxes, executive offices $ 16,500 Using this cost information, prepare a cost of goods manufactured schedule for Mr. Clemens. Vaughn Company Schedule of Cost of Goods Manufactured

Answer 1

Vaughn Company
Schedule of Cost of Goods Manufactured
Direct materials inventory , beginning	86,000
Add:Direct materials purchases	971,000
Raw Material available for use	1,057,000
Less:Ending raw material inventory	130,000
Raw material used		927,000
Direct labor		758,000
Manufacturing Overheads:
Depreciation - Factory	24,100
Insurance - Factory	58,600
Utilities - Factory	15,600
Indirect labor	216,000
Property taxes - Factory	16,300
Total Manufacturing Overheads		330,600
Total Manufacturing Cost		2,015,600
Add :Work in process inventory, beginning		149,000
Less: Work in process inventory, ending		99,000
Cost of goods manufactured		$2,065,600.00