Need help with the following question Given the following selected account balan

ID: 2419397 • Letter: N

Question

Need help with the following question

Given the following selected account balances of Delray Mfg $1,250,000 Sales Raw materials inventory, Dec. 31, 2014 37,000 Work in process inventory, Dec. 31, 2014 53,900 62,750 Finished goods inventory, Dec. 31, 2014 Raw materials purchases 175,600 225,000 Direct labor Factory computer supplies used 17,840 47,000 Indirect labor Repairs-Factory equipment 5,250 57,000 Rent cost of factory building 94,000 Advertising expense General and administrative expenses 129,300 Raw materials inventory, Dec. 31, 2015 42,700 41,500 Work in process inventory, Dec. 31, 2015 67,300 Finished goods inventory, Dec. 31, 2015 Prepare its schedule of cost of goods manufactured for the year ended December 31, 2015

Explanation / Answer

DELRAY MFG.

Schedule of cost of goods manufacture

For the year ended December 31, 2015

Direct materials:

Beginning raw material inventory, Jan 1

$37000

Raw materials available for use

$175600

Direct material used

$42700

$169900

Direct labor

$ 225000

Factory overhead:

Factory computer supplies used

$17840

Indirect labor

$47000

Repairs- factory equipment

$5250

Rent cost of factory building

$57000

Advertising expense

$94000

General and administrative expensees

$129300

Total factory overhead costs

$350390

Total manufacturing costs

$745290

Total cost of work in process (53900 - 41500)

$12400

Cost of goods manufactured

$757690