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 $210,250 $182,920 Work in process 138,770 120,730 Finished goods 109,330 124,390 Direct labor $378,450 Materials purchased during January 403,680 Factory overhead incurred during January: Indirect labor 40,370 Machinery depreciation 24,390 Heat, light, and power 8,410 Supplies 6,730 Property taxes 5,890 Miscellaneous costs 10,930.

b. Determine the cost of goods sold for January

Answer 1

Schedule of Cost of goods manufactured

Beginning raw material inventory		210,250
Add: Purchases of raw material		403,680
Total raw materials available		613,930
Less: Ending raw materials inventory		- 182,920
Raw materials used in production		431,010
Direct labor		378,450
Manufacturing overheads:
Indirect labor	40,370
Machinery depreciation	24,390
Heat, light, and power	8,410
Supplies	6,730
Property taxes	5,890
Miscellaneous costs	10,930
Total Manufacturing overheads		96,720
Total manufacturing cost		906,180
Add: Beginning work in process inventory		138,770
Less: Ending work in process inventory		- 120,730
Cost of goods manufactured		924,220

Schedule of cost of goods sold

Beginning finished goods inventory	109,330
Add: Cost of goods manufactured	924,220
Cost of goods available for sale	1,033,550
Less: Ending finished goods inventory	- 124,390
Cost of goods sold	909,160

cost of goods sold for January = $909,160