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ID: 2549341 • Letter: C

Question

CengageNoww2lOnline × | v2.cengagenow.com/ilrm/takeAssignment/takeAssignmentMain.do?invoker-&takeAssignmentSess; eBook Show Me How Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Disksan Manufacturing Company for the month ended January 31 are as follows: Inventories anuary 1 January 31 Materials Work in process334,600 290,700 Finished goods 180,000 $145,500 675,000 715,000 Direct labor Materials purchased during January Factory overhead incurred during January $2,260,000 1,375,000 Indirect labor Machinery depreciation Heat, light, and power Supplies Property taxes Miscellaneous costs 15,000 90,000 55,000 18,500 10,000 33,100 a. Prepare a cost of goods manufactured statement for January Disksan Manufacturing Company Statement of Cost of Goods Hanufactured Work in process inventory January 1 Direct materials: Materials inventory, Jasuary 1 18000V 1.375.000 Purchases Cost of materials available for use 1.375.000 | 31 145.500 v Cost of direct materials used Direct labor Factory overhead 2 260400 115,000 90,000 s5.000 v teal, lioht. and power Supplies

Explanation / Answer

Work in progress inventory on January 1 (A)

$ 334,600

Material inventory on January 1st (B)

$ 180,000

Material purchase ©

$1,375,000

Cost of Material Available for use (D ) = (A+B+C)

$1,555,000

Less Material inventory on January 31st (E)

$145,500

Cost of Direct Material used (F) = (D-E)

$1,409,500

Direct labor (G)

$2,260,000

Factory Overheads

Indirect Labor (H)

$115,000

Machinery depreciation (I)

$90,000

Heat, light, and power (J)

$5,000

Supplies (L)

$18,500

Property tax (L)

$10,000

Miscellaneous cost (M)

$ 33,100

Total Factory overhead (N) = ( G+H+I+J+K+L)

$438,100

Total Manufacturing Cost During January (O) = (F+G+N)

$4,107,600

Total Manufacturing Cost (P) = (A+O)

$4,442,200

Less work in progress on January 31st (Q)

$290,700

Cost of Goods Manufactured (R) = (P-Q)

$4,151.500

Cost Of Goods Sold

Inventory of finished goods on January 1st (A)

$67,5000

Cost of goods Manufactured during January (B)

$ 4,151,500

To cost of finished goods available for sales ©= (A+B)

$4,826,500

Inventory of finished goods on 31st January (D)

$715,000

Cost of Goods sold (E) =(C-D)

$4,111,500