In: Accounting
The Corporation incurred the following costs while manufacturing its product:
Materials used in product $121,500 Advertising expense $45,400
Depreciation on plant 62,400 Property taxes on plant 19,300
Property taxes on warehouse 8,400 Delivery expense 21,000
Labour costs of assembly-line workers 110,700 Sales commissions 35,100
Factory supplies used 25,000 Salaries paid to sales clerks 50,600
Work in process inventory was $10,000 at January 1 and $14,300 at December 31. Finished goods inventory was $60,600 at January 1 and $51,100 at December 31.
Calculate the cost of goods manufactured.
2.
The Company reported the following costs and expenses in May:
Factory utilities $25,300 Direct labour $91,000
Depreciation on factory equipment 22,650 Sales salaries 54,600
Depreciation on delivery trucks 6,600 Property taxes on factory building 2,670
Indirect factory labour 56,300 Repairs to office equipment 2,900
Indirect materials 89,600 Factory repairs 3,000
Direct materials used 144,800 Advertising 26,000
Factory manager’s salary 19,100 Office supplies used 5,790
Determine the total amount of product costs. Ignore the money sign.
1.
Schedule of Cost of Goods manufactured | ||
Raw Material used in production | $ 121,500 | |
Direct Labor | $ 110,700 | |
Manufacturing Overhead | ||
Depreciation on Plant | $ 62,400 | |
Factory Supplies Used | $ 25,000 | |
Property Taxes on Plant | $ 19,300 | $ 106,700 |
Total Manufacturing Costs | $ 338,900 | |
Add: Beginning Work in Process Inventory | $ 10,000 | |
$ 348,900 | ||
Deduct: Ending Work in Process Inventory | $ 14,300 | |
Cost of Goods Manufactured | $ 334,600 |
2.
Product Cost | |
Factory Utilities | $ 25,300 |
Depreciation on factory equipment | $ 22,650 |
Indirect Factory Labor | $ 56,300 |
Indirect Material | $ 89,600 |
Direct Material Used | $ 144,800 |
Factory Manager's Salary | $ 19,100 |
Direct Labor | $ 91,000 |
Property Taxes on Factory Building | $ 2,670 |
Factory Repairs | $ 3,000 |
Total Product Cost | $ 454,420 |