Question

Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during the current year. Indirect labor amounted to $2,700 while indirect materials used totaled $1,600. Other operating costs pertaining to the factory included utilities of $3,100, maintenance of $4,500, supplies of $1,800, depreciation of $7,900, and property taxes of $2,600. There was no beginning or ending finished goods inventory, but work in process Inventory began the year with a $5,500 balance and ended the year with a $7,500 balance. Prepare a statement of cost of goods manufactured Allen Company Statement of Cost of Goods Manufactured For the Year Ended December 31 Factory overhead: Total manufacturing costs incurred Total manufacturing costs Cost of goods manufactured

Answer 1

Allen Company
Schedule of Cost of Goods Manufactured
For the Year Ended December 31
Beginning Work in Process Inventory			$5,500
Direct Materials		$71,000
Direct Labor		$37,000
Factory Overhead:
Indirect Labor	$2,700
Indirect Materials	$1,600
Factory Utilities	$3,100
Factory Maintenance	$4,500
Factory Supplies	$1,800
Depreciation	$7,900
Property Taxes	$2,600	$24,200
Total Manufacturing Costs Incurred			$132,200
Total Manufacturing Costs			$137,700
Less: Ending Work in Process Inventory			$7,500
Cost of Goods Manufactured			$130,200