Question

Using the information on the Data tab of the spreadsheet , complete the cost of goods manufactured for January.

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Below is manufacturing data from Webster Company for January, 2020.
Beginning raw materials inventory	$          321,300
Raw materials purchased	$          845,150
Ending raw materials inventory	$          275,475
Direct labor costs	$          104,590
Indirect materials	$             47,560
Indirect labor	$             29,876
Factory utilities and maintenance	$          148,890
Factory depreciation	$             19,876
Other factory related overhead	$               7,890
Beginning work in process	$          225,678
Ending work in process	$          214,545
1.   Use this information to produce a Schedule of Cost of Goods Manufactured in the next tab

Direct Materials
Raw materials transferred to production
Direct Labor
Factory Overhead
Total manufacturing costs
Less: Ending work in process, Jan 31
Cost of goods manufactured

2.   Cost of Goods Sold for January was $1,460,000. What was the change in Finished Goods Inventory during the month (indicate positive or negative change)?

Answer 1

1.

Schedule of Cost of goods manufactured

Direct materials:
Beginning raw material inventory	321,300
Add: Purchases of raw material	845,150
Total raw materials available	1,166,450
Less: Ending raw materials inventory	-   275,475
Raw materials used in production		890,975
Direct labor		104,590
Factory overhead
Indirect materials	47,560
Indirect labor	29,876
Factory utilities and maintenance	148,890
Factory depreciation	19,876
Other factory related overhead	7,890	254,092
Total manufacturing cost		1,249,657
Add: Beginning work in process inventory		225,678
		1,475,335
Less: Ending work in process inventory		- 214,545
Cost of goods manufactured		$1,260,790

2.

Cost of Goods Sold for January =  $1,460,000

Cost of goods manufactured for January = $1,260,790

change in Finished Goods Inventory during the month = Cost of goods manufactured for January - Cost of Goods Sold for January

= 1,260,790 - 1,460,000

= - $199,210

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