Question

The problem is on the first picture and you insert the answers into the second picture.

Ashley Corporation provided the following list of cost data related to its manufacturing operations for the month of September 2014. Beginning raw materials inventory Raw materials purchased (net) Ending raw materials inventory Direct labor costs Indirect materials Indirect labor Factory utilities Factory depreciation Property taxes on office building only Property taxes on factory building only Property insurance on factory building only Factory maintenance Depreciation on office equipment Salaries for customer service personnel Beginning work in process Ending work in procesS 966,400 2,345,500 818,200 322,300 125,500 88,900 456,000 56,600 2,500 4,000 7,000 13,400 4,300 94,000 777,000 717,000 (a)Arrange the cost data into a statement of cost of goods manufactured. (b)If Ashley's cost of goods sold for the month was $4,000,000, how much was the increase or decrease in finished goods inventory for the month of September?

Answer 1

a)

ASHLEY CORPORATION
SCHEDULE OF COST OF GOODS MANUFACUTRED
FOR THE MONTH ENDING SEPTEMBER 30, 2014
Direct materials
Beginning raw material inventory	$     966,400
Raw material purchased	$ 2,345,500
Raw material available for use	$ 3,311,900
Less: Ending raw material inventory	$   (818,200)
Raw material transferred to production		$ 2,493,700
Direct labor		$     322,300
Factory overhead
Indirect materials	$     125,500
Indirect labor	$        88,900
Factory utilities	$     456,000
Factory depreciation	$        56,600
Other factory overhead ($4,000+$7,000+$13,400)	$        24,400	$     751,400
Total manufacturing cost		$ 3,567,400
Add: beginning work in process		$     777,000
Total inventory in work in process		$ 4,344,400
Less: Ending work in process		$   (717,000)
Cost of goods manufactured		$ 3,627,400

b)

Cost of goods sold	$   4,000,000
Less: Cost of goods manufactured	$ (3,627,400)
Decrease in finished goods inventory	$       372,600

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