Question

Sunland Company produces small gasoline-powered engines for model airplanes. Mr. Clemens, Sunland's CFO, has present you with the following cost information: Direct Materials Inventory, beginning $ 81,000 Direct Materials Inventory, ending $ 130,000 Work in Process Inventory, beginning $ 149,000 Work in Process Inventory, ending $ 97,500 Direct labor $ 783,000 Direct materials purchases $ 941,000 Insurance, factory $ 51,000 Depreciation, factory $ 29,500 Depreciation, executive offices $ 12,500 Indirect labor $ 227,000 Utilities, factory $ 17,200 Utilities, executive offices $ 8,900 Property taxes, factory 17,600 Property taxes, executive offices $ 12,100 Using this cost information, prepare a cost of goods manufactured schedule for Mr. Clemens. Sunland Company Schedule of Cost of Goods Manufactured

Answer 1

Ans.	Sunland Company
	Schedule of Cost of Goods Manufactured
	Particulars	Amount	Amount
	Direct materials:
	Beginning raw materials inventory	$81,000
	Add: Purchase of direct materials	$941,000
	Raw materials available	$1,022,000
	Less: Ending raw materials inventory	-$130,000
	Direct materials used (A)		$892,000
	Direct labor (B)		$783,000
	Manufacturing overhead applied:
	Indirect labor	$227,000
	Insurance, factory	$51,000
	Depreciation, factory	$29,500
	Utilities, factory	$17,200
	Property taxes, factory	$17,600
	Total manufacturing overhead ©		$342,300
	Total manufacturing costs (A+B+C)		$2,017,300
	Add: Beginning Work in process inventory		$149,000
	Less: Ending Work in process inventory		-$97,500
	Cost of goods manufactured		$2,068,800
	*Depreciation, Utilities and Property taxes of executive offices are the part of general,
	administrative and selling expenses are listed in Income Statement.