Question

w the loowing account balances in thousands for the Shay Corporation (Click the loon to view the account balances) Requirements 1. Prepare a schedule for the cost of goods manufactured for 2017 2. Revenues in thousands for 2017 were 500.000 Prepare the one stems for 2017 Requirement 1. Prepare a schedule for the cost of goods manufactured for 2017 Start with the direct materials and labor costs, the manufacturing overhead costs, and complete the schedule by calling cost of goods manufactured Shay Corporation Schedule of Cost of Goods Manufactured For the Year Ended December 31, 2017 in thousands) Direct materials Direct materials used Direct manufacturing labor

Answer 1

1		Shay corporation
	Schedule of cost of goods manufactured
					$	$
	Direct materials:
	Beginning direct materials inventory				125000
	Add:Purchase of direct materials				258000
	Total raw materials available				383000
	Less:Ending direct materials inventory				67000
	Direct materials used					316000
	Direct manufacturing labor					214000
	Manufacturing overhead costs:
	Indirect manufacturing labor				102000
	Plant insurance				8000
	Depreciation-Plant,building, and equipment				44000
	Plant utilities				23000
	Repairs and maintenance-Plant				19000
	Equipment leasing costs				70000
	Total manufacturing overhead costs					266000
	Manufacturing costs incurred during 2017					796000
	Add: Beginning balance of work in process					170000
	Total manufacturing costs to account for					966000
	Less: Ending work in process inventory					149000
	Cost of goods manufactured					817000
2		Shay corporation
		Income statement
					$	$
	Revenues					900000
	Cost of goods sold:
	Cost of goods manufactured				817000
	Add:Beginning finished goods inventory				250000
	Cost of goods available for sale				1067000
	Less:Ending finished goods inventory				210000
	Cost of goods sold					857000
	Gross profit					43000
	Operating costs:
	Marketing,distribution and customer-service costs				121000
	General and administrative costs				70000
	Total operating costs					191000
	Operating income/(loss)					-148000