Question

The Zoe Corporation has the following information for the month of March. Prepare a schedule of cost of goods manufactured.

Purchases	$92,000
Materials inventory, March 1	6,000
Materials inventory, March 31	8,000
Direct labor	25,000
Factory overhead	37,000
Work in process, March 1	22,000
Work in process, March 31	18,500
Finished goods inventory, March 1	21,000
Finished goods inventory, March 31	25,000
Sales	257,000
Sales and administrative expenses	79,000

ANS:  

Zoe Corporation
Statement of Cost of Goods Manufactured Answer all in bold
Work in process inventory March 1
Direct Materials:
Materials inventory, March 1
Purchases
Cost of materials for use
Less materials inventory, March 31
Cost of materials placed in production
Direct Labor
Factory overhead
Total manufacturing costs added
Total manufacturing costs
Less work in process inventory, March 31
Cost of goods manufactured

Answer 1

Statement of Cost of Goods Manufactured

Work in process inventory March 1			22000
Direct Materials:
Materials inventory, March 1	6000
Purchases	92000
Cost of materials for use	98000
Less materials inventory, March 31	-8000
Cost of materials placed in production		90000
Direct Labor		25000
Factory overhead		37000
Total manufacturing costs added			152000
Total manufacturing costs			174000
Less work in process inventory, March 31			-18500
Cost of goods manufactured			155500