Question

Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Johnstone Manufacturing Company for the month ended March 31 are as follows: March 1 March 31 Inventories Materials $ 142,000 $123,540 Work in process 95,140 82,770 Finished goods 72,420 82,770 Direct labor $255,600 272,640 Materials purchased during March Factory overhead incurred during March: Indirect labor 27,260 Machinery depreciation 16,470 Heat, light, and power 5,680 4,540 Supplies 3,980 Property taxes Miscellaneous costs 7,380 a. Prepare a cost of goods manufactured statement for March. Johnstone Manufacturing Company Statement of Cost of Goods Manufactured For the Month Ended March 31 Work in nrocess inventory, March 1. 95.140

Answer 1

a. Johnstone Manufacturing Company Statement of Cost of Goods Manufactured For the Month Ended March 31 $95,140 $1,42,000 $2,72,640 -$1,23,540 $2,91,100 $2,55,600 Work in progress inventory, March 1 Direct Materials: Materials inventory, March 1 Materials Purchases Less: Materials inventory, March 31 Direct Materials used Direct Labor Factory Overhead: Indirect Labor Machinery Depreciation Heat, light and power Supplies Property Taxes Miscellaneous costs Total Factory Overhead Total Manufacturing Costs incurred during March Total Manufacturing Costs Less: Work in progress inventory, March 31 Cost of Goods Manufactured $27,260 $16,470 $5,680 $4,540 $3,980 $7,380 $65,310 $6,12,010 $7,07,150 -$82,770 $6,24,380

b. Johnstone Manufacturing Company Statement of Cost of Goods Sold For the Month Ended March 31 Cost of Goods Manufactured Add: Finished Goods, March 1 Less: Finished Goods, March 31 Cost of Goods Sold $6,24,380 $72,420 $82,770 $6,14,030