Question

ction to Cost Accounting HAA LO4 , LOS Glasson Manufacturing Co. produces only one product. You have obtained the following information from the corporation's books and records for the current year ended December 31, 2016: a. Total manufacturing cost during the year was $1,000,000, including direct materials, direct labor, and factory overhead. b. Cost of goods manufactured during the year was $970,000. c. Factory Overhead charged to Work in Process was 75% of direct labor cost and 27% of the total manufacturing cost. d. The beginning Work in Process inventory, on January 1, was 40% of the ending Work in Process inventory, on December 31. e. Material purchases were $400,000 and the ending balance in Materials inventory was $60,000. No indirect materials were used in production. Required: Prepare a statement of cost of goods manufactured for the year ended December 31 for Glasson Manufacturing. (Hint: Set up a statement of cost of goods manufactured, putting the given information in the appropriate spaces and solving for the unknown information.) D1-10 Toh Order Cnet. Tournal Entriee. Endinn Work in Dracece Tnventary

Answer 1

Solution:

Glasson manufacturing company
Schedule of cost of goods manufactured
Particulars		Amount
Direct materials:
Beginning raw material inventory	$30,000.00
Add: Raw material purchases	$400,000.00
Raw materials available	$430,000.00
Less: Ending raw material inventory	$60,000.00
Direct materials used in production ($1,000,000 - $360,000 - $270,000)		$370,000.00
Direct labor (Factory overhead / 75%)		$360,000.00
Factory overhead applied (27% of $1,000,000)		$270,000.00
Total manufacturing costs		$1,000,000.00
Add: Beginning WIP		$20,000.00
Total cost of work in process		$1,020,000.00
Less: Ending WIP		$50,000.00
Cost of goods manufactured		$970,000.00