Question

Required information The following selected account balances are provided for Delray Mfg. $ Sales Raw materials inventory, beginning Work in process inventory, beginning Finished goods inventory, beginning Raw materials purchases Direct labor Factory supplies used (indirect materials) Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and administrative expenses Raw materials inventory, ending Work in process inventory, ending Finished goods inventory, ending 1,313,000 41,000 50,500 61,500 176, 100 243,000 17,500 45,000 5,250 52,000 100,000 127,000 48,000 42,600 71,300 Prepare its schedule of cost of goods manufactured for the current year ended December 31. DELRAY MFG. Schedule of Cost of Goods Manufactured For Year Ended December 31, Year 1 Direct materials Raw materials available for use 0 Direct materials used $ 0 Factory overhead: 0 Total factory overhead costs Total manufacturing costs 0 Total cost of work in process 0 Cost of goods manufactured $ 0

Answer 1

169100 243000 Delray Mfg Cost of goods Manufactured Schedule For the Current year December 31, Year 1 Direct Materials Raw material inventory Beginning 41000 Raw material purchased 176100 Total raw materials available for use 217100 Less: Raw material inventory ending 48000 Direct Materials used Direct labor Factory overhead: Facory computer supplies used 17500 Indirect labor 45000 Repairs - Factory equipment 5250 Rent cost of factory building 520001 Total factory over head Total manufacturing costs Add: Work in process, Beginning Total cost of work in process Less: Work in process, Ending Cost of goods Manufactured 119750 531850 50500 582350 42600 539750

DELRAY MFG. Income statement For the year Ended December 31, Year 1 Sales Cost of goods sold Finished goods inventory, Beginning 61500 Add: Cost of goods manufactured 539750 1313000 601250 71300 529950 Cost of goods available for sale Less: Finished goods inventory, Ending Cost of goods sold Gross profit Operating expenses: Advertising expenses General and administrative expenses 783050 100000 127000 227000 Total operating expenses Operating Income 556050