Question

Problem 3-50 Interpreting the Schedule of Cost of Goods Manufactured (LO 3-2, 3-6) [The following information applies to the questions displayed below.j The following data refer to Superior Metals Corporation for the year 20x4 Part 1 of3 Raw-material inventory Purchases of raw material in Raw-material inventory $ 89,000 12/31/x3 20x4 12/31/x4 0.83 points 732,000 59,000 475,000 268,000 151,000 91,000 126,000 24,000 46,000 60,000 Direct-labor cost incurred Seing and administrative eBook expenses Indirect labor cost incurred Property taxes on factory Depreciation on factory Referenc es building Income tax expense Indirect material used Depreciation on factory equipment Insurance on factory and 40,000 71,000 0 equipment Utilities for factory 12/31/x3 12/31/x4 12/31/x3 Work-in-process inventory, Work-in-process inventory Finished-goods inventory Finished-goods inventory 40,000 35,000

Answer 1

answer

total manufacturing cost =$2,307,500

cost of goods manufactured =$2,267,500

explanation

direct materials used
Raw material opening	$89,000
add raw material purchased	732,000
less ending raw materials	(59,000)
less indirect material used	(46,000)
direct material used		$716,000
direct labor		475,000
factory overheads
indirect labor	151,000
property taxes on factory	91,000
depreciation on factory building	126,000
depreciation on factory equipment	60,000
insurance on factory equipment	40,000
utilities for factory	71,000
applied mfg overhead	577,500
total manufacturing overhead		1,116,500
total manufacturing cost		2,307,500
add opening work in process		0
less closing work in process		(40,000)
cost of goods manufactured		$2,267,500

summary

1.when you are calculating direct material used , opening raw material plus purchases less closing raw material less indirect material used is equals to the direct materials used

2.total manufacturing cost = direct material +direct labor+manufacturing overhead

3.cost of goods manufactured = manufacturing cost +opening work in progress - closing work in progress