Statement of Cost of Goods Manufactured P 5. Dillo Vineyards, a large winery in

Question

Statement of Cost of Goods Manufactured P 5. Dillo Vineyards, a large winery in Texas, produces a full line of varietal wines. The company, whose fiscal year begins on November 1, has just completed a record-breaking year. Its inventory account balances on October 31 of this year were Materials Inventory, $1,803,800; Work in Process Inventory, $2,764,500; and Finished Goods Inventory, $1,883,200. At the beginning of the year, the inventory account balances were Materials Inventory, $2,156,200; Work in Process Inventory, $3,371,000; and Finished Goods Inventory, $1,596,400. During the fiscal year, the company s purchases of direct materials totaled $6,750,000. Direct labor hours totaled 142,500, and the average labor rate was $8.20 per hour. The following overhead costs were incurred during the year: depreciation plant and equipment, $685,600; indirect labor, $207,300; property tax, plant and equipment, $94,200; plant maintenance, $83,700; small tools, $42,400; utilities, $96,500; and employee benefits, $76,100. Required: Prepare a statement of cost of goods manufactured for the fiscal year ended October 31.

Explanation / Answer

Direct Material - (Opening) 2,156,200 Purchases 6,750,000 Direct material available for use 8,906,200 Direct Material - (Closing) 1,803,800 Direct Material Used 7,102,400 Direct Labour 1,168,500 Prime Cost 8,270,900 Applied Factory Overhead Plant Maintenance 83,700 Small Tools 42,400 Indirect Labour Cost 207,300 Indirect Material Used Total Manafacturing Cost 333,400 WIP - (Opening) 3,371,000 Cost of goods to be manafactured 3,704,400 WIP - (Closing) 2,764,500 Cost Of Goods Manafactured 939,900

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