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		$180,000			$165,510
Work in process		373,630			437,480
Finished goods		502,460			527,900
Direct labor					$3,000,000
Materials purchased during March					2,285,310
Factory overhead incurred during March:
Indirect labor					274,280
Machinery depreciation					180,000
Heat, light, and power					150,000
Supplies					29,910
Property taxes					25,710
Miscellaneous costs					39,170

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
   					$
   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 Manufactured
For the Month Ended March 31
Direct Materials:
Materials on March 1	$180,000
Add: Materials purchased in March	$2,285,310
Total materials available for use	$2,465,310
Less: Materials on March 31	($165,510)
Direct Materials		$2,299,800
Direct Labor		$3,000,000
Factory Overheads:
Indirect labor	$274,280
Machinery depreciation	$180,000
Heat, light and power	$150,000
Supplies	$29,910
Property taxes	$25,710
Miscellaneouse costs	$39,170
Total factory overheads		$699,070
Total Manufacturing Costs		$5,998,870
Add: Work in process inventory on March 1		$373,630
Total cost of work in process		$6,372,500
Less: Work in process inventory on March 31		($437,480)
Cost of Goods Manufactured		$5,935,020
b) Cost of Goods Sold:
Cost of Goods Manufactured		$5,935,020
Add: Finished goods inventory on March 1		$502,460
Cost of goods available for sale		$6,437,480
Less: Finished goods inventory on March 31		($527,900)
Cost of Goods Sold		$5,909,580