The following cost and inventory data for the just completed year are taken from

Question

The following cost and inventory data for the just completed year are taken from the accounting records of Eccles Company:
Costs incurred:
Advertising expense . . . . . . . . . . . . . . . . . . . . $100,000
Direct labor cost . . . . . . . . . . . . . . . . . . . . . . . $90,000
Purchases of raw materials . . . . . . . . . . . . . . $132,000
Rent, factory building . . . . . . . . . . . . . . . . . . . $80,000
Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . $56,300
Sales commissions . . . . . . . . . . . . . . . . . . . . . $35,000
Utilities, factory . . . . . . . . . . . . . . . . . . . . . . . . $9,000
Maintenance, factory equipment . . . . . . . . . . $24,000
Supplies, factory . . . . . . . . . . . . . . . . . . . . . . . $700
Depreciation, office equipment . . . . . . . . . . . . $8,000
Depreciation, factory equipment . . . . . . . . . . . $40,000


Required:
1. Prepare a schedule of cost of goods manufactured.
2. Prepare the cost of goods sold section of Eccles Company

Explanation / Answer

Direct Materials Used Materials Inventory, Beginning 55,000 Direct Materials Purchased xx,xxx Less materials inventory, ending 65,000 Cost of Direct Materials Used xx,xxx Direct Labor xx,xxx Manufacturing Overhead xx,xxx Total Manufacturing Costs xx,xxx Add Beginning work in process inventory Less Ending work in process inventory Cost of Goods Manufactured

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