Question

4.

Statement of Cost of Goods Manufactured for a Manufacturing Company

Cost data for Disksan Manufacturing Company for the month ended January 31 are as follows:

Inventories	January 1		January 31
Materials	$172,000		$154,800
Work in process	115,240		103,720
Finished goods	89,440		103,720

Direct labor		$309,600
Materials purchased during January		330,240
Factory overhead incurred during January:
	Indirect labor	33,020
	Machinery depreciation	19,950
	Heat, light, and power	6,880
	Supplies	5,500
	Property taxes	4,820
	Miscellaneous costs	8,940

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

Disksan 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.
$

Answer 1

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Part a
Direct materials costs
-Beginning inventory		$ 172,000
- Purchases of direct materials		$ 330,240
-Cost of direct materials available for use		$ 502,240
Ending inventory		$-154,800
Direct Material Used			$ 347,440
Direct Labor			$ 309,600
Factory Overhead:
Indirect labor	$ 33,020
Machinery depreciation	$ 19,950
Heat, light, and power	$    6,880
Supplies	$    5,500
Property taxes	$    4,820
Miscellaneous costs	$    8,940		$    79,110
Manufacturing costs incurred			$ 736,150
Add beginning work-in-process inventory			$ 115,240
Total manufacturing costs to account for			$ 851,390
Less Ending WIP			$-103,720
Cost of Goods Manufactured			$ 747,670
Part b
Cost of goods sold:
Beginning finished goods inventory		$    89,440
Cost of goods manufactured (above)		$ 747,670
Cost of goods available for sale		$ 837,110
Ending finished goods inventory		$-103,720
Cost of goods sold		$ 733,390