Question

Required information The following selected account balances are provided for Delray Mfg. $ Sales Raw materials inventory, beginning Work in process inventory, beginning Finished goods inventory, beginning Raw materials purchases Direct labor Factory supplies used (indirect materials) Indirect labor 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 1,153,000 42,000 55,500 64,200 158,600 226,000 16,800 54,000 5,250 56,000 87,000 128,000 44,400 39,600 70,400

Answer 1

DELRAY MFG. Schedule of cost of goods manufactured. For Year Ended December 31, Year 1 Direct Materials Beginning raw materials inventory $42,000 Add: Purchases of raw materials $158,600 Raw materials available for use $200,000 Less: ending inventory of raw materials $44,400 Direct materials used Direct Labor $156,200 $226,000 Factory overhead Factory supplies used Indirect labor Repair - Factory equipment Rent cost of Factory building $16,800 $54,000 $5,250 $56,000 Total factory overhead Total manufacturing costs Add: beginning work in process Total cost of work in progress Less: ending work in process Cost of goods manufactured $132,050 $514,250 $55,500 $569,750 $39,600 $530,150