Question

Bonita Company produces small gasoline-powered engines for model airplanes. Mr. Clemens, Bonita's CFO, has presented you with the following cost information: Direct Materials Inventory, beginning $ 88,000 Direct Materials Inventory, ending $ 127,000 Work in Process Inventory, beginning $ 147,000 Work in Process Inventory, ending $ 97,500 Direct labor $ 787,000 Direct materials purchases $ 982,000 Insurance, factory $ 57,600 Depreciation, factory $ 20,800 Depreciation, executive offices $ 15,500 Indirect labor $ 214,000 Utilities, factory $ 19,500 Utilities, executive offices $ 8,700 Property taxes, factory $ 16,000 Property taxes, executive offices $ 12,900 Using this cost information, prepare a cost of goods manufactured schedule for Mr. Clemens. Bonita Company Schedule of Cost of Goods Manufactured Add :( Less : A $ Indirect Labor Utilities, Factory Utilities, Executive Offices Property Taxes, Factory Property Taxes, Executive Offices Property Taxes, Factory Property Taxes, Executive Offices OC

Answer 1

Solution

Bonita Company
Schedule of Cost of Goods Manufactured
Direct Material
Raw material Inventory Beginning	$ 88,000
Raw material Purchased	$ 982,000
Raw material available for use	$ 1,070,000
Less: Raw material Inventory Ending	$ 127,000
Direct Material Used		$ 943,000
Direct labor		$ 787,000
Manufacturing overheads
Insurance expense	$ 57,600
Depreciation, factory	$        20,800.00
Indirect labor	$     214,000.00
Utilities, Factory	$        19,500.00
Property taxes, factory	$        16,000.00
Total Manufacturing overheads applied		$ 327,900
Total manufacturing Cost During the month		$ 2,057,900
Add: Work in process Beginning		$ 147,000
Less: Work in progress Ending		$ 97,500
Cost of Goods Manufactured		$ 2,107,400