Question

Required information

Use the following information for the Exercises below.

The following selected account balances are provided for Delray Mfg.

Sales	$	1,206,000
Raw materials inventory, Dec. 31, 2016		40,000
Work in process inventory, Dec. 31, 2016		50,900
Finished goods inventory, Dec. 31, 2016		68,500
Raw materials purchases		177,100
Direct labor		231,000
Factory computer supplies used		22,900
Indirect labor		59,000
Repairs—Factory equipment		5,250
Rent cost of factory building		58,000
Advertising expense		90,000
General and administrative expenses		145,000
Raw materials inventory, Dec. 31, 2017		42,900
Work in process inventory, Dec. 31, 2017		42,600
Finished goods inventory, Dec. 31, 2017		71,800

Exercise 1-13 Preparation of schedule of cost of goods manufactured LO P2

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 materialsRaw materials available for useDirect materials usedFactory overhead:Total factory overhead costsTotal manufacturing costsTotal cost of work in processCost of goods manufactured

Answer 1

Exercise 1-13 Preparation of schedule of cost of goods manufactured

Beginning raw material inventory	40000
Add Raw material purchase	177100
Less: Ending raw material inventory	42900
Direct material used		174200
Direct labour		231000
Factory overhead
Factory computer supplies used	22900
Indirect labour	59000
Repairs—Factory equipment	5250
Rent cost of factory building	58000
Total manufacturing overhead		145150
Total manufacturing cost		550350
Beginning work in process		50900
Total cost of work in process		601250
Less; Ending work in process		(42600)
Cost of goods manufactured		558650