Question

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	$	50,000			$	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	$	8,000
Indirect labor		24,000
Depreciation on plant and equipment		100,000
Utilities		24,000
Other		30,000

Sales revenue was $1,111,000 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.

ALEXANDRIA ALUMINUM COMPANY
Schedule of Cost of Goods Manufactured
For the Year Ended December 31, 20x1
Direct material:
Manufacturing overhead:
Total manufacturing overhead		0
Total manufacturing costs		$0
Subtotal
Cost of goods manufactured

Answer 1