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 1,469,000 38,000 53,100 61,000 158,800 241,000 24,000 47,000 5,250 53,000 105,000 135,000 41,000 44,300 71,700 Prepare its schedule of cost of goods manufactured for the current year ended December 31. DELRAY MFG Schedule of Cost of Goods Manufactured For Year Ended December 31, Year 1 Direct materials Raw materials available for use Direct materials used Factory overhead: Total factory overhead costs Total manufacturing costs Total cost of work in process Cost of goods manufactured

Answer 1

Schedule of cost of goods manufactured for the year ended dec 31

Direct materials
Raw materials at the beginning	$38000
Add: Raw material purchased	$158800
Raw materials available for use	$196800
Less: Raw material at the year end	($41000)
Direct materials used		$155800
Direct labor		$241000
Prime cost		$396800
Add: Factory overhead
Factory supplies (indirect material)	$24000
Indirect labor	$47000
Repairs-factory equipment	$5250
Rent cost for factory building	$53000
Total factory cost		$129250
Total manufacturing cost		$526050
Add:opening work in progress	$53100
Total cost of work in progress		$579150
Less: Closing work in progress	($44300)
Cost of goods manufactured		$534850

Income statement for the year ended dec 31

Sales (A)		$1469000
Cost of goods sold
Cost of goods manufactured	$534850
Add: Beginning finished goods inventory	$61000
Cost of goods available for sale	$595850
Less:closing finished goods inventory	($71700)
Cost of goods sold (B)		$524150
Operating expenses
Advertising expenses	$105000
General and administration expenses	$135000
Total operating expenses (C)		$240000
Operating income(A-B-C)		$704850