Question

Given the following selected account balance of Delray Mfg., prepare its schedule of cost of goods manufactured for the current year ended December 31. Include a listing of the individual overhead ac- count balances in this schedule. Exercise 18-13 Preparing schedule of cost of goods manufactured P2 interes inventory beginning Work in process inventory beginning .. Finished goods inventory beginning...... ReNoell purchases..... Drect whor.. Factory supplies used indirect materials)... $1.250.000 37,000 52,900 62,750 175.600 225,000 17,840 47.000 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............ $ 5250 57.000 94,000 129,300 42,700 41,500 67.300 Check Cost of goods matched $534190

Answer 1

Solution:

Delray Manufacturing
Schedule of cost of goods manufactured
For year ended December 31
Particulars		Amount
Direct materials:
Beginning inventory of raw materials	$37,000.00
Raw material purchases	$175,600.00
Raw materials available for use	$212,600.00
Less: Ending inventory of raw materials	$42,700.00
Direct materials used		$169,900.00
Direct labor		$225,000.00
Factory overhead:
Factory supplies used	$17,840.00
Indirect labor	$47,000.00
Repairs - Factory Equipment	$5,250.00
Rent cost of factory building	$57,000.00
Total factory overhead costs		$127,090.00
Total manufacturing costs		$521,990.00
Add: beginning WIP		$53,900.00
Total cost of work in process		$575,890.00
Less: Ending WIP		$41,500.00
Cost of goods manufactured		$534,390.00