Question

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StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March: Raw materials Work in process Finished goods Beginning Inventory Ending Inventory $33,000 $22,000 25,000 44,000 60,000 58,000 Additional information for the month of March follows: StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March: Raw materials purchases Indirect materials used Direct labor Manufacturing overhead applied Selling, general, and administrative expenses Sales revenue $ 84,000 10,000 55,000 85,000 58,000 450,000 Required: 1. Based on the above information, prepare a cost of goods manufactured report. STORSMART COMPANY Cost of Goods Manufactured Report For the Month of March Beginning Raw Materials Inventory $ Plus: Raw Material Purchases Less: Indirect Material Used Less: Ending Raw Materials Inventory Direct Materials used in Production $ Manufacturing Overhead 33,000 84,000 10,000 (22,000) 95,000 (10,000) Total Current Manufacturing Costs $ 85,000 Total Work in Process $ 85,000 Cost of Goods Manufactured

Answer 1

Solution

STORESMART COMPANY
Cost of Goods Manufactured Report
For the Month of March
Direct Material
Raw material Inventory Beginning	$ 33,000
Plus: Raw material Purchased	$ 84,000
Less: Indirect raw material used	-$ 10,000
Less: Raw material Inventory Ending	-$ 22,000
Direct Material Used	$ 85,000
Direct labor	$ 55,000
Manufacturing overheads applied	$ 85,000
Total manufacturing Cost During the month	$ 225,000
Add: Work in process Beginning	$ 25,000
Total Work in Process	$ 250,000
Less: Work in progress Ending	$ 44,000
Cost of Goods Manufactured	$ 206,000