Allen Company used $71,000 of direct materials and incurred $37,000 of direct la

Question

Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during the current year. Indirect labor amounted to $2,700, while indirect materials used totaled $1,600. Other operating costs pertaining to the factory included utilities of $3,100, maintenance of $4,500, supplies of $1,800, depreciation of $7,900, and property taxes of $2,600. There was no beginning or ending finished goods inventory, but work in process inventory began the year with a $5,500 balance and ended the year with a $7,500 balance. Prepare a statement of cost of goods manufactured. Allen Company Statement of Cost of Goods Manufactured For the Year Ended December 31

Allen CompanyStatement of Cost of Goods ManufacturedFor the Year Ended December 31

Prepare a statement of cost of goods manufactured. Allen Company Statement of Cost of Goods Manufactured For the Year Ended December 31 Beginning work in process inventory Direct materials Direct labor Factory overhead Indirect labor Indirect materials Total manufacturing costs incurred Total manufacturing costs Cost of goods manufactured

Explanation / Answer

ALLEN CO. Statement of cost of goods manufactured' For year ended December 31 Opening work in progress inventory                5,500 Direct Materials          71,000 Direct Labour          37,000 Factory Overhead Indirect Labour          2,700 Indirect Materials          1,600 Utilities          3,100 Maintenance          4,500 Supplies          1,800 Depreciation          7,900 Property Tax          2,600          24,200 Total manufacturing cost incurred          1,32,200 Total manufacturing cost          1,37,700 Less: Closing work in progress inventory 7,500 Cost of goods manufactured          1,30,200

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