Question

Statement of cost of goods manufactured for a manufacturing company

Cost data for Johnstone Manufacturing Company for the month ended March 31 are as follows:

Inventories	March 1			March 31
Materials		$189,600			$174,340
Work in process		393,550			460,820
Finished goods		529,260			556,070
Direct labor					$3,160,000
Materials purchased during March					2,407,190
Factory overhead incurred during March:
Indirect labor					288,910
Machinery depreciation					189,600
Heat, light, and power					158,000
Supplies					31,510
Property taxes					27,080
Miscellaneous costs					41,260

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

1. Prepare a cost of goods manufactured statement for March. Round your answers to the nearest dollar.

   Johnstone Manufacturing Company
   Statement of Cost of Goods Manufactured
   For the Month Ended March 31
   Machinery depreciation					$
   Direct materials:
   	$
   	$
   			$
   Factory overhead:
   	$
   Total factory overhead
   Total manufacturing costs incurred during March
   Total manufacturing costs					$
   Cost of goods manufactured					$

2. Determine the cost of goods sold for March. Round your answer to the nearest dollar.

Answer 1

a.

Johnstone Manufacturing Company

Statement of cost of goods manufacture

For the month ended March 31

Work in process, beginning			393,550
Direct material :
Raw material, beginning	189,600
Raw material purchase	2,407,190
Raw material available	2,596,790
Raw material, ending	-174,340
Direct material used		2,422,450
Direct labor		3,160,000
Factory overheads :
Heat light and power	158,000
Machinery Depreciation	189,600
Indirect labor	288,910
Supplies	31,510
Property taxes	27,080
Miscellaneous costs	41,260
Total factory overheads		736,360
Total manufacturing cost  incurred during March			6,318,810
Total manufacturing cost			6,712,360
Work in process, ending			-460,820
Cost of goods manufactured			$6,251,540

b.

Schedule of cost of goods sold

Finished goods, beginning	529,260
Cost of goods manufactured	6,251,540
Cost of goods available for sale	6,780,800
Finished goods, ending	-556,070
cost of goods sold	$6,224,730