Question

Catlett Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 120% of direct labor cost. Selected data concerning operations of the company are presented below.

Direct Materials Inventory, Beginning	$	88,000
Direct Materials Inventory, Ending		75,000
Direct Materials Purchases		395,000
Direct Labor		300,000
Finished Goods Inventory, Beginning		137,000
Finished Goods Inventory, Ending		130,000
Actual Factory Overhead		322,000
Work-in-Process Inventory, Beginning		72,000
Work-in-Process Inventory, Ending		55,000

Required:

Prepare a statement of cost of goods manufactured and a statement of cost of goods sold for the year ended December 31, 20XX.

Answer 1