Question

Question 1 Cost of Goods Manufactured Suggested time 20 minutes 15 Marks


COneVIDeo Manufacturing Company provided the following details about operations in February 2020: Purchases of raw materials $ 142,000 Maintenance, factory 38,200 Direct labour 33,300 Depreciation, factory equipment 56,600 Indirect materials, factory 3,200 Selling and administrative salaries 43,700 Utilities, factory 26,800 Sales commissions 17,900 Insurance, factory equipment 4,200 Depreciation, sales equipment 20,800 Advertising expenses 109,500 Rent, factory building 53,480   

The company also provided details regarding the balances in the inventory accounts at the beginning and end of the month as follows: Beginning of Month End of Month Raw materials $ 29,000 $22,480 Work in process 25,600 30,900 Finished goods 17,000 46,500   

Required 1) Prepare a schedule of cost of goods manufactured for the month.

Answer 1

Statement of cost of goods manufacture

Raw material, beginning	29,000
Raw material purchase	142,000
Raw material available	171,000
Raw material, ending	-22,480
Direct material used		148,520
Direct labor		33,300
Factory overheads :
Maintenance	38,200
Depreciation factory equipment	56,600
Indirect material	3,200
Utilities	26,800
Insurance	4,200
Rent	53,480
Total factory overheads		182,480
Total manufacturing cost		364,300
Work in process, beginning		25,600
Work in process, ending		-30,900
Cost of goods manufactured		$359,000