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Alexandria Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20x1.

Inventory Classification	January 1, 20x1					December 31, 20x1
Raw material		$	60,000				$	70,000
Work in process			120,000					115,000
Finished goods			150,000					165,000

During 20x1, the company purchased $250,000 of raw material and spent $400,000 on direct labor. Manufacturing overhead costs were as follows:

Indirect material	$	10,000
Indirect labor		25,000
Depreciation on plant and equipment		100,000
Utilities		25,000
Other		30,000

Sales revenue was $1,105,000 for the year. Selling and administrative expenses for the year amounted to $110,000. The firm’s tax rate is 40 percent.

Required:
1. Prepare a schedule of cost of goods manufactured.

Answer 1