Calculate Cost of Goods Manufactured and prepare a schedule to support your calc
ID: 2419875 • Letter: C
Question
Calculate Cost of Goods Manufactured and prepare a schedule to support your calculations based upon the following information for Example Manufacturing, Inc. for January 2015. Remember that not all of the below items appear on the Cost of Goods Manufactured schedule.
Depreciation on salespersons' vehicles
$ 3,000
Depreciation on factory equipment
12,000
Direct labor used
70,000
Direct materials used
50,000
Factory maintenance
6,500
Finished goods balance, January 1
30,000
Finished goods balance, January 31
31,000
Wages for factory night security
5,500
President’s salary
12,000
Rent on the factory building
3,500
Sales commissions
9,000
Utilities for factory activities
3,400
Work in Process balance January 1
64,000
Work in Process balance January 31
66,300
Factory supervisor's salary for January
9,000
Salespersons' salaries for January
16,000
Advertising expense for January
3,000
Insurance expense for factory building for January
1,500
The example that I have has the answer with numbers in three different columns; needless to say, I don't understand.
Depreciation on salespersons' vehicles
$ 3,000
Depreciation on factory equipment
12,000
Direct labor used
70,000
Direct materials used
50,000
Factory maintenance
6,500
Finished goods balance, January 1
30,000
Finished goods balance, January 31
31,000
Wages for factory night security
5,500
President’s salary
12,000
Rent on the factory building
3,500
Sales commissions
9,000
Utilities for factory activities
3,400
Work in Process balance January 1
64,000
Work in Process balance January 31
66,300
Factory supervisor's salary for January
9,000
Salespersons' salaries for January
16,000
Advertising expense for January
3,000
Insurance expense for factory building for January
1,500
Explanation / Answer
Cost of Gooods Manufactured:
Particulars Amount Direct Labor 70000 Direct Material 50000 Factory Maintenance 6500 Finished Goods Closing Balance 31000 Wages for Factory Night Security 5500 Rent on Factory Building 3500 Utilities for Factory Activities 3400 Work in Process Closing Balance 66300 Factory Supervisor's Salary 9000 Insurance Expense for Factory Building 1500 Depreciation on Factory Equipment 12000 258700 Less: Finished Goods Opening Balance 30000 Work in Process Opening Balance 64000 (94000) Cost Of Goods Manufactured 164700Related Questions
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