Question

Howard Manufacturing Company had the following account balances for the quarter ending March 31, unless otherwise noted:

Work-in-process inventory (January 1) $ 140,400

Work-in-process inventory (March 31) 171,000

Finished goods inventory (January 1) 540,000

Finished goods inventory (March 31) 510,000

Direct materials used 420,000

Indirect materials used 84,000

Direct manufacturing labor 480,000

Indirect manufacturing labor 186,000

Property taxes on manufacturing plant building 28,800

Salespersons' company vehicle costs 12,000

Depreciation of manufacturing equipment 264,000

Depreciation of office equipment 123,600

Miscellaneous plant overhead 135,000

Plant utilities 92,400

General office expenses 305,400

Marketing distribution costs 30,000

A. Using the data from Howard Manufacturing, prepare a cost of goods manufactured schedule for the quarter

B. Using the data from Howard Manufacturing, prepare a cost of goods sold schedule for the quarter

Answer 1

Statement of cost of goods manufacture

Direct material used		420,000
Direct labor		480,000
Factory overheads :
Indirect manufacturing labor	186,000
Property taxes on manufacturing plant building	28,800
Depreciation of manufacturing equipment	264,000
Miscellaneous plant overhead	135,000
Plant utilities	92,400
Indirect material	84,000
Total factory overheads		790,200
Total manufacturing cost		1,690,200
Work in process, beginning		140,400
Work in process, ending		-171,000
Cost of goods manufactured		$1,659,600

Schedule of cost of goods sold

Finished goods, beginning	540,000
Cost of goods manufactured	1,659,600
Cost of goods available for sale	2,199,600
Finished goods, ending	-510,000
cost of goods sold	$1,689,600