Question

StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March: Beginning Inventory Ending Inventory $22,000 44,000 58,000 $33,000 25,000 60,000 Raw materials Work in process Finished goods 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: $ 84,000 10,000 55,000 85,000 58,000 450,000 Raw materials purchases Indirect materials used Direct labor Manufacturing overhead applied Selling, general, and administrative expenses Sales revenue 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 Direct Materials Used in Production Total Current Manufacturing Costs Total Work in Process Cost of Goods Manufactured

Answer 1

1) Cost of goods manufactured report

Direct material used
Beginning raw material	33000
Raw material purchase	84000
raw material available for use	117000
Less: Ending raw material	-22000
Raw material used	95000
Less: Indirect material	-10000
Direct material used	85000
Direct labor	55000
Manufacturing overhead applied	85000
Current manufacturing cost	225000
Beginning work in process	25000
Total Cost of work in process	250000
Less: Ending work in process	-44000
Cost of goods manufactured	206000

2) Income statement

Sales revenue		450000
Cost of goods sold
Beginning finished goods	60000
Cost of goods manufactured	206000
Cost of goods available for sale	266000
Less: Ending finished goods	-58000
Cost of goods sold		208000
Gross profit		242000
Selling, general and administrative expense		-58000
Income from operation		184000