Question

The following selected account balances are provided for Delray Mfg. Sales $ 1,135,000 Raw materials inventory, Dec. 31, 2016 39,000 Work in process inventory, Dec. 31, 2016 53,800 Finished goods inventory, Dec. 31, 2016 65,200 Raw materials purchases 196,900 Direct labor 228,000 Factory computer supplies used 20,700 Indirect labor 45,000 Repairs—Factory equipment 5,250 Rent cost of factory building 51,000 Advertising expense 90,000 General and administrative expenses 138,000 Raw materials inventory, Dec. 31, 2017 45,600 Work in process inventory, Dec. 31, 2017 39,800 Finished goods inventory, Dec. 31, 2017 70,200

Exercise 1-13 Preparation of schedule of cost of goods manufactured LO P2

Prepare its schedule of cost of goods manufactured for the year ended December 31, 2017.

Answer 1

DELRAY MFG
Cost of Goods manufactured
For the year ended December 31, 2017
Labels	Amount Descriptions	Amount Descriptions
Direct materials
Direct materials inventory, December 31, 2016	$ 39,000
Direct materials purchases	$ 196,900
Cost of direct materials available for use	$ 235,900
Direct materials inventory, December 31, 2017	$ 45,600
Cost of direct materials placed in production		$ 190,300
Direct labor		$ 228,000
Factory overhead
Indirect Labor	$ 45,000
Factory Computer supplies used	$ 20,700
Factory repair equipments	$ 5,250
Rent Expenses-Factory	$ 51,000
Total Factory Overheads		$ 121,950
Total Manufacturing Cost		$ 540,250
Less: Work in process inventory, December 31, 2016		$ 53,800
Total work in process during the period		$ 594,050
Less: Work in process inventory, December 31, 2017		$ 39,800
Costs of good manufactured		$ 554,250