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 1,338,000 43,000 51,400 65,500 151,900 232,000 21,800 43,000 5, 250 60,000 95,000 144,000 43,700 41,900 68,100

Answer 1

  Schedule of Cost of Goods Manufactured for the year ended Ended December 31,Year 1 is as follows:

                                            

                                              DELRAY MFG.

                Schedule of Cost of Goods Manufactured

                            For the year ended Ended December 31,Year 1

	$	$
Direct Materials
Raw Material Inventory at Begining	43,000
Add: Raw Material Purchases	151,900
Raw Material Available for use	194,900
Less: Material Inventory at Ending	(43,700)
Direct Materials Used		151,200
Direct Labor		232,000
Factory Overhead:
Factory supplied used( Indirect Materials)	21,800
Indirect Labour	43,000
Repairs - Factory Equipment	5,250
Rent cost of factory building	60,000
Total Factory Cost		130,050
Total Manufacturing Cost		513,250
Add: Work in Process Inventory Begining		51,400
Total Cost of work in process		564,650
Less:Work in Process Inventory Ending		(41,900)
Cost of goods Manufactured		$522,750