Question

The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2C 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 $57,500 41,500 96,300 22,100 21,300 28,200 142,650 26,760 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 $4,900 17,000 31,100 8,550 561,300 4,300 65,100 9,610 1,500 99,400 42,100 Cash (a) Prepare a cost of goods manufactured schedule. (Acciime !

Answer 1

Cost of goods manufactured schedule of Clarkson company for the year ended june 30,2020

Particulars	Amount (in $)	Amount (in$)
Direct materials used
Opening raw materials	57500
Add: raw materials purchased	99400
Total raw materials available	156900
Less: Ending raw materials	(41500)	115400
Direct labor		142650
Manufacturing overhead
Indirect labour	26760
Factory insurance	4900
Factory machinery depreciation	17000
Factory utilities	31100
Factory repairs	1500
Factory property tax	9610
Plant managers salary	65100
Total manufacturing overhead		155970
Total manufacturing cost		414020
Add: Beginning work in progress		21300
Less: Ending work in progress		(28200)
Cost of goods manufactured		407120

Notes:

1.It is assumed that plant is directly used in the manufacturing process. So the plant manager's salary can be taken to manufacturing overhead.

2. All the saled related expenses shall not be taken for the computation of cost of goods manufactured.

3. Office utilities expenses are not directly related with the production. So it is not taken for computation.