Question

Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows: Inventories January 1 January 31 Materials $154,750 $134,630 Work in process 105,230 91,550 Finished goods 78,920 90,200 Direct labor $278,550 Materials purchased during January 297,120 Factory overhead incurred during January: Indirect labor 29,710 Machinery depreciation 17,950 Heat, light, and power 6,190 Supplies 4,950 Property taxes 4,330 Miscellaneous costs 8,050 a. Prepare a cost of goods manufactured statement for January.

Answer 1

Direct materials beginning inventory	$ 154,750
Add: Purchases during the year	$ 297,120
Raw materials avaialable for use	$ 451,870
Less: Ending inventory	$ 134,630
Direct materials	$ 317,240
Direct labor	$ 278,550
Factory overhead	$    71,180	=29710+17950+6190+4950+4330+8050
Total current manufacturing cost	$ 666,970
Add: Beginning WIP	$ 105,230
Total cost of work in process inventory	$ 772,200
Less: Ending WIP	$    91,550
Cost of goods manufactured	$ 680,650