Question

1. 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	$208,750		$187,880
   Work in process	139,860		125,880
   Finished goods	108,550		127,760

   Direct labor		$375,750
   Materials purchased during January		400,800
   Factory overhead incurred during January:
   	Indirect labor	40,080
   	Machinery depreciation	24,220
   	Heat, light, and power	8,350
   	Supplies	6,680
   	Property taxes	5,850
   	Miscellaneous costs	10,860

   a. Prepare a cost of goods manufactured statement for January.

   Sandusky Manufacturing Company
   Statement of Cost of Goods Manufactured
   For the Month Ended January 31
   			$
   Direct materials:
   	$
   	$
   		$
   Factory overhead:
   	$
   Total factory overhead
   Total manufacturing costs incurred during January
   Total manufacturing costs			$
   Cost of goods manufactured			$

   b. Determine the cost of goods sold for January.
   $

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Answer 1

a
Sandusky Manufacturing Company
Statement of Cost of Goods Manufactured
For the Month Ended January 31
Work in process, January 1			139860
Direct materials:
Materials inventory, January 1	208750
Purchases	400800
Cost of materials available for use	609550
Materials inventory, January 31	187880
Cost of direct materials used		421670
Direct labor		375750
Factory overhead:
Indirect labor	40080
Machinery depreciation	24220
Heat, light, and power	8350
Supplies	6680
Property taxes	5850
Miscellaneous costs	10860
Total factory overhead		96040
Total manufacturing costs incurred during January			893460
Total manufacturing costs			1033320
Work in process inventory, January 31			125880
Cost of goods manufactured			907440
b
Finished goods inventory, January 1	108550
Cost of goods manufactured	907440
Cost of finished goods available for sale	1015990
Finished goods inventory, January 31	127760
Cost of goods sold	888230