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 $224,000 $201,600 154,560 139,100 Work in process Finished goods 114,240 137,090 Direct labor $403,200 430,080 Materials purchased during January Factory overhead incurred during January: Indirect labor 43,010 Machinery depreciation 25,980 Heat, light, and power 8,960 Supplies 7,170 Property taxes 6,270 Miscellaneous costs 11,650 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

a.

Diskan Manufacturing Company
Statement of Cost of Goods Manufactured
For the Month Ended January 31
Work in process inventory, January 1			154,560
Direct materials:
Materials inventory, January 1	224,000
Purchases	430,080
Cost of materials available for use	654,080
Materials inventory, January 31	-201,600
Cost of direct materials used in production		452,480
Direct labor		403,200
Factory Overhead:
Indirect labor	43,010
Machinery depreciation	25,980
Heat, light and power	8,960
Supplies	7,170
Property taxes	6,270
Miscellaneous costs	11,650
Total Factory Overhead		103,040
Total manufacturing costs incurred during March			958,720
Total manufacturing costs			1,113,280
Work in process inventory, March 31			-139,100
Cost of goods manufactured			$974,180

b.

Schedule of Cost of Goods Sold
Finished goods inventory, January 1	114,240
Add:Cost of goods manufactured	974,180
Cost of goods available for sale	1,088,420
Finished goods inventory, January 31	-137,090
Cost of goods sold	$951,330

The cost of goods sold for January $951,330

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