Question

The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2020. $5,600 18,600 29,200 Raw Materials Inventory 7/1/19 Raw Materials Inventory 6/30/20 Finished Goods Inventory 7/1/19 Finished Goods Inventory 6/30/20 Work in Process Inventory 7/1/19 Work in Process Inventory 6/30/20 Direct Labor Indirect Labor Accounts Receivable $48,100 46,200 99,600 21,600 27,700 25,300 144,150 24,960 29,900 Factory Insurance Factory Machinery Depreciation Factory Utilities Office Utilities Expense Sales Revenue Sales Discounts Plant Manager's Salary Factory Property Taxes Factory Repairs Raw Materials Purchases Cash 8,850 561,400 4,900 64,400 9,910 2,100 99,200 40,700

Answer 1

Solution:

CLARKSON COMPANY
Cost of Goods Manufactured Schedule
For the Year Ended June 30, 2020
Work in process, 7/1/19			$       27,700
Direct Materials
Beginning Raw Materials Inventory	$          48,100
Add: Purchases of raw materials	$          99,200
Raw Material available for Production	$        147,300
Deduct: Ending Raw Materials Inventory	$        (46,200)
Direct Materials used in production(A)		$        101,100
Direct Labor		$        144,150
Factory Overhead:
Indirect labor	$          24,960
Factory utilities	$          29,200
Factory Insurance	$            5,600
Depreciation, factory machinery	$          18,600
Plant Manager`s Salary	$          64,400
Factory property taxes	$            9,910
Factory Repairs	$            2,100
Total Manufacturing Overheads		$        154,770
Total Manufacturing Costs			$     400,020
Total work in process inventory			$     427,720
Less: Work in process, 6/30/20			$     (25,300)
Cost of Goods Manufactured			$     402,420