Question

9/24 After Class Practice 4-1 (2 pgs) part 1. Using the information below, prepare a cost of goods manufactured statement in good form. Use actual overhead on the statement. Case 1 $27,000 7,000 9,000 12,000 16,000 ? Factory insurance. Factory supplies... Direct labor... Factory depreciation Raw materials used. Advertising Depreciation-office equipment Indirect labor.. Other factory overhead costs..... Check figure: Total manufacturing costs: $125,000 $10,000 Purchases of raw materials 2,000 Beginning raw materials inventory ........... 40,000 Ending raw materials inventory ........ 18,000 Beg. work in process inventory. 25,000 Ending work in process inventory 10,000 Total factory overhead. 3,000 Total manufacturing costs.. 8,000 COGM.. 22,000 ? ?

Answer 1

CASE 1

SCHEDULE OF COST OF GOODS MANUFACUTRED
Raw material used		$        25,000
Direct labor		$        40,000
Factory overhead
Factory insurance	$        10,000
Factory supplies	$          2,000
Factory depreciation	$        18,000
Indirect labor	$          8,000
Other factory overhead	$        22,000
Total factory overheads		$        60,000
Total manufacturing cost		$     125,000
Add: beginning work in process inventory		$        12,000
Total inventory in work in process		$     137,000
Less: Ending work in process inventory		$     (16,000)
Cost of goods manufactured		$     121,000

CASE 2

Raw material used ($450,000-260,000-110,000)	$        80,000
Direct labor	$     110,000
Manufacturing overhead	$     260,000
Total manufacturing cost	$     450,000
Add: beginning work in process inventory	$        55,000
Less: Ending work in process inventory	$     (50,000)
Cost of goods manufactured	$     455,000

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