Question

Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Disksan Manufacturing Company for the month ended January 31 are as follows: Inventories January 1 January 31 Materials $231,000 $198,660 154,770 133,100 Work in process Finished goods 120,120 133,100 Direct labor $415,800 Materials purchased during January 443,520 Factory overhead incurred during January: Indirect labor 44,350 Machinery depreciation Heat, light, and power 26,800 9,240 Supplies 7,390 Property taxes 6,470 Miscellaneous costs 12,010 a. Prepare a cost of goods manufactured statement for January. Disksan Manufacturing Company Statement of Cost of Goods Manufactured For the Month Ended January 31

Answer 1

Disksan Manufacturing Company

statement of Cost of goods manufacturing

For the month ended January 31

Particulars	Sub. Amount(In $)	Sub. Amount(In $)	Amount(In $)
Opening inventory of raw material	$231,000
+ Purchases of material	443,520
Material available for use	674,520
- Opening inventory of raw material	198,660
Raw material used		475,860
Direct labour		415,800
Prime cost			$891,660
Factory overheads-
Indirect labour	44,350
Machinery depreciation	26,800
Heat light & power	9,240
Supplies	7,390
property taxes	6,470
Misc. costs	12,010
Total Factory overheads		106,260
Total manufacturing cost incurred during january			$997,920
+Opening inventory of WIP			154,770
			1,152,690
-closing inventory of WIP			133,100
Cost of goods manufactured			$1,019,590
+Opening inventory of Finished goods			120,120
cost of goods available for sale			1,139,710
-closing inventory of Finished goods			133,100
Cost of goods sold			$1,006,610

So

Cost of goods manufactured=$10,19,590.

Cost of goods sold=$10,06,610

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