Question

Required information The following selected account balances are provided for Delray Mfg. $ Sales Raw materials inventory, beginning Work in process inventory, beginning Finished goods inventory, beginning Raw materials purchases Direct labor Factory supplies used (indirect materials) Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and administrative expenses Raw materials inventory, ending Work in process inventory, ending Finished goods inventory, ending 1,275,000 42,000 51,600 66,000 167,000 226,000 16,600 41,000 5,250 53,000 98,000 138,000 46,900 47,200 67,900 Prepare its schedule of cost of goods manufactured for the current year ended December 31.

Answer 1

162100 226000 Delray Mfg Cost of goods Manufactured Schedule For the year Ended December 31, Year 1 Direct Materials Raw material inventory Beginning 420001 Raw material purchased 167000 Total raw materials available for use 209000 Less: Raw material inventory ending 46900 Direct Materials used Direct labor Factory overhead: Facory computer supplies used 16600 Indirect labor 41000 Repairs - Factory equipment 5250 Rent cost of factory building 53000 Total factory over head Total manufacturing costs Add: Work in process, Beginning Total cost of work in process Less: Work in process, Ending Cost of goods Manufactured 115850 503950 51600 555550 472001 508350

DELRAY MFG. Income statement For the year Ended December 31, Year 1 Sales Cost of goods sold Finished goods inventory, Beginning 66000 Add: Cost of goods manufactured 508350 12750001 574350 67900 Cost of goods available for sale Less: Finished goods inventory, Ending Cost of goods sold Gross profit Operating expenses: Advertising expenses General and administrative expenses 506450) 768550 98000 138000 Total operating expenses Operating Income 236000 532550