Administrative salaries expense $ 135,000 Depreciation expense - Factory equipme

Question

Administrative salaries expense $ 135,000
Depreciation expense - Factory equipment 52,400
Depreciation expense - Delivery vehicles 36,200
Depreciation expense - Office equipment 24,800
Advertising expense 22,350
Direct labor 268,000
Factory supplies used 12,000
Income taxes expense 91,500
Indirect labor 35,000
Indirect material 24,000
Factory insurance 15,500
Factory utilities 14,000
Factory maintenance 7,500
Inventories
Raw materials inventory, January 1 32,000
Raw materials inventory, December 31 28,000
Goods in process inventory, January 1 33,780
Goods in process inventory, December 31…… 37,460
Finished goods inventory, January 1 56,970
Finished goods inventory, December 31 62,000
Raw materials purchases 325,000
Rent expense - Factory 50,000
Rent expense - Office space 24,000
Rent expense - Selling Space 24,000
Sales salaries expense 97,500
Sales 1,452,000
Sales discounts 29,000

Explanation / Answer

Manufacturing Statement For Year Ended December 31 Direct materials Raw materials inventory, January 1st . . . . . . . . $ 32,000 Raw materials purchases . . . . . . . . . . . . . . . . . 3,25,000 Raw materials available for use . . . . . . . . . . . . .3,57,000 Less raw materials inventory, Dec. 31, . . . . . . . . 28,000 Direct materials used . . . . . . . . . . . . . . . . . . . . . . $ 3,29,000 Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,68,000 Factory overhead Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . .35,000 Factory insurance . . . . . . . . . . . . . . . . . . . . . . . 15,500 Factory utilities . . . . . . . . . . . . . . . . . . . . . . . . 14,000 factory maintenance …………………………………………… 7,500 Rent of factory......................................... 50,000 Factory supplies used . . . . . . . . . . . . . . . . . . . . .12,000 Depreciation expense-Factory equipment . . . . . . . .52,400 Total factory overhead . . . . . . . . . . . . . . . . . . . . . . . 1,86,400 Total manufacturing costs . . . . . . . . . . . . . . . . . . . . . . 7,83,400 Add goods in process inventory, jan . . . . . . . . 33,780 Total cost of goods in process . . . . . . . . . . . . . . . . . . . 8,17,180 Less goods in process inventory, Dec. . . . . . . . 37,460 Cost of goods manufactured . . . . . . . . . . . . . . . . . . $ 7,79,720 Note:- other expenses are not taken in to consideration because it does not belong to this head of it belongs to administrative overhead and selling and distribution overhead

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