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: Inventories March 1 March 31 Materials $165,150 $183,500 122,950 110,650 Work in process Finished goods 93,590 110,650 $330,300 352,320 35,230 Direct labor Materials purchased during March Factory overhead incurred during March: Indirect labor Machinery depreciation Heat, light, and power Supplies Property taxes Miscellaneous costs 21,290 7,340 5,870 5,140 9,540 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

Answer 1

a.

Johnstone Manufacturing Company
Statement of Cost of Goods Manufactured
For the Month Ended March 31
Work in process inventory, March 1			122,950
Direct materials:
Materials inventory, March 1	183,500
Purchases	352,320
Cost of materials available for use	535,820
Materials inventory, March 31	-165,150
Cost of direct materials used in production		370,670
Direct labor		330,300
Factory Overhead:
Indirect labor	35,230
Machinery depreciation	21,290
Heat, light and power	7,340
Supplies	5,870
Property taxes	5,140
Miscellaneous costs	9,540
Total Factory Overhead		84,410
Total manufacturing costs incurred during March			785,380
Total manufacturing costs			908,330
Work in process inventory, March 31			-110,650
Cost of goods manufactured			$797,680

b.

Schedule of Cost of Goods Sold
Finished goods inventory, beginning	93,590
Add:Cost of goods manufactured	797,680
Cost of goods available for sale	891,270
Finished goods inventory, Ending	-110,650
Cost of goods sold	$780,620

The cost of goods sold for March = $780,620

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