Required information The following selected account balances are provided for De

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Required information

The following selected account balances are provided for Delray Mfg.

Prepare its schedule of cost of goods manufactured for the year ended December 31, 2017.

DELRAY MFG.Schedule of Cost of Goods ManufacturedFor Year Ended December 31, 2017Direct materials:Raw materials available for useDirect materials usedFactory overhead:Total factory overhead costsTotal manufacturing costsTotal cost of work in processCost of goods manufactured

Sales $ 1,250,000 Raw materials inventory, Dec. 31, 2016 37,000 Work in process inventory, Dec. 31, 2016 53,900 Finished goods inventory, Dec. 31, 2016 62,750 Raw materials purchases 175,600 Direct labor 225,000 Factory computer supplies used 17,840 Indirect labor 47,000 Repairs—Factory equipment 5,250 Rent cost of factory building 57,000 Advertising expense 94,000 General and administrative expenses 129,300 Raw materials inventory, Dec. 31, 2017 42,700 Work in process inventory, Dec. 31, 2017 41,500 Finished goods inventory, Dec. 31, 2017 67,300

Explanation / Answer

DELRAY MANUFACTURING Schedule of cost of goods manufacture For the year ended DECEMBER 31,2017 PARTICULARS DEBIT CREDIT Direct Materials:- Beginning raw material inventory,january 1 $37,000 Raw materials available for use $175,600 Direct material used $42,700 $169,900 Direct labour $225,000 Factory overghead:- Factory computer supplies used $17,840 Indirect labour $47,000 Repairs-factory equipment $5,250 Rent cost of factory building $57,000 Advertising expense $94,000 General and administrative expenses $129,300 Total factory overhead costs $350,390 Total manufacturing costs $745,290 Total cost of work in process (53900-41500) $12,400 Cost of goods manufactured $757,690

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