Question

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	$153,000		$134,640
Work in process	105,570		92,900
Finished goods	78,030		91,560

Direct labor		$275,400
Materials purchased during January		293,760
Factory overhead incurred during January:
	Indirect labor	29,380
	Machinery depreciation	17,750
	Heat, light, and power	6,120
	Supplies	4,900
	Property taxes	4,280
	Miscellaneous costs	7,960

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
Work in process inventory, January 1			$
Direct materials:
Materials inventory, January 1	$
Purchases
Cost of materials available for use	$
Less materials inventory, January 31
Cost of direct materials used		$
Direct labor
Factory overhead:
Indirect labor	$
Machinery depreciation
Heat, light, and power
Supplies
Property taxes
Miscellaneous costs
Total factory overhead
Total manufacturing costs incurred during January
Total manufacturing costs			$
Less work in process inventory, January 31
Cost of goods manufactured			$

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a. Add the beginning materials and purchases and subtract the ending materials. Add direct labor and factory overhead. This will give total manufacturing costs. Then, add the total manufacturing costs to the beginning work in process and subtract the ending work in process.

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

Answer 1

a
Disksan Manufacturing Company
Statement of Cost of Goods Manufactured
For the Month Ended January 31
Work in process inventory, January 1			105570
Direct materials:
Materials inventory, January 1	153000
Purchases	293760
Cost of materials available for use	446760
Less materials inventory, January 31	134640
Cost of direct materials used		312120
Direct labor		275400
Factory overhead:
Indirect labor	29380
Machinery depreciation	17750
Heat, light, and power	6120
Supplies	4900
Property taxes	4280
Miscellaneous costs	7960
Total factory overhead		70390
Total manufacturing costs incurred during January			657910
Total manufacturing costs			763480
Less work in process inventory, January 31			92900
Cost of goods manufactured			670580
b
Finished goods, January 1	78030
Add: Cost of goods manufactured	670580
Cost of goods available for sale	748610
Less: Finished goods, January 31	91560
Cost of goods sold	657050