Question

E18-20 Preparing a schedule of cost of goods manufactured Wilson Corp., a lamp manufacturer, provided the following information for the year ended December 31, 2018: earning Objective 3 1. COGM: $444,000 Beginning Ending 59,000 23,000 62,000 44,000 Balances: Direct Materials Work-in-Process Inventory Finished Goods Inventory Other information: Depreciation, plant building and equipment Direct materials purchases Insurance on plant Sales salaries Repairs and maintenance-plant Indirect labor Direct labor Administrative expenses 109,000 41,000 16,000 151,000 24,000 47,000 10,000 39,000 121,000 60,000 Requirements 1. Use the information to prepare a schedule of cost of goods manufactured. 2. What is the unit product cost if Wilson manufactured 3,700 lamps for the year

Answer 1

Question 1

Computation of Cost of Goods Manufactured
Particulars		Amount
Direct Material		$ 187,000.00
Direct Labour		$ 121,000.00
Prime Cost		$ 308,000.00
Factory Overheads
Depreciation	$ 16,000.00
Plant Insurance	$ 24,000.00
Repairs and Maintenance	$ 10,000.00
Indirect Labour	$ 39,000.00	$ 89,000.00
Factory Cost		$ 397,000.00
(+)Opening WIP		$ 109,000.00
(-)Closing WIP		$ 62,000.00
Factory Cost of Completed Units		$ 444,000.00
Administration Overhead		$ 60,000.00
Cost of Goods Manufactured		$ 504,000.00

Note: Administration Overhead may or may not be a part of the Cost of Goods Manufactured depending upon its nature and assumption made.

WN1) Direct Material
Opening Stock	$ 59,000.00
(+) Purchases	$ 151,000.00
(-) Closing Stock	$ 23,000.00
Direct Material Consumption	$ 187,000.00

Question 2

Computation of Unit Product Cost
Particulars	Amount
Cost of Goods Manufactured	$ 504,000.00
(+) Opening Finished Goods	$ 41,000.00
(-) Closing Finished Goods	$ 44,000.00
Cost of Goods Sold	$ 501,000.00
Selling and Distribution Expense	$ 47,000.00
Cost of Sales	$ 548,000.00
Unit Product Cost (548000 / 3700)	$ 148.11

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