Question

Required information The following selected account balances are provided for Delray Mfg. Sales Raw materials inventory, Dec. 31, 2016 Work in process inventory, Dec. 31, 2016 Finished goods inventory, Dec 31, 2016 Raw materials purchases Direct labor Factory computer supplies used Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and administrative expenses Raw materials inventory: Dec 31, 2017 Work in process inventory, Dec. 31, 2017 Pinished goods inventory. Dec. 31, 2017 $1,143,000 37,000 53,200 60,400 169,800 238,000 21,400 53,000 5,250 57.000 85,000 140,000 45,800 47,000 70,500 Prepare its schedule of cost of goods manufactured for the year ended December 31, 2017. DELRAY MFG.

Answer 1

Delray MFG Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Finished goods inventory, Dec 31 2016 $ 60,400.00 Cost of goods manfactured $ 541,850.00 $ 1,143,000.00 $ 602,250.00 $ 70,500.00 Cost of goods available for sale Less : Finished goods inventory, Dec 31 2017 Cost of goods sold Gross profit Operating expense Advertising expense General and administrative expenses $ $ 531,750.00 611,250.00 $ 85,000.00 $ 140,000.00 Total Operating expenses Operating Income $ 225,000.00 $ 386,250.00 Delray MFG Schedule of Cost of goods manfactured For Year Ended December 31, 2017 Direct materials Raw material inventory,Dec 31 2016 $ 37,000.00 Add : Raw material purchase $ 169,800.00 Raw material available for use $ 206,800.00 Less : Raw material inventory, Dec 31 2017 $ 45,800.00 Direct materials used Directlabour $ $ 161,000.00 238,000.00 Factory overhead : Factory computer supplies Indirect labour Repairs - Factory equipment Rent cost of factory building $ $ $ $ 21,400.00 53,000.00 5,250.00 57,000.00 Total Factory overhead costs Total manfacturing costs Add : Work in process, Dec 31 2016 Total Cost of work in process Less : Work in process, Dec 31 2017 Cost of goods manfactured $ 136,650.00 $ 535,650.00 $ 53,200.00 $ 588,850.00 $ 47,000.00 $ 541,850.00 Note : Please comment down for any further clarifications