In: Accounting
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 | $196,500 | $170,960 | ||
Work in process | 129,690 | 112,830 | ||
Finished goods | 102,180 | 116,250 |
Direct labor | $353,700 | |
Materials purchased during January | 377,280 | |
Factory overhead incurred during January: | ||
Indirect labor | 37,730 | |
Machinery depreciation | 22,790 | |
Heat, light, and power | 7,860 | |
Supplies | 6,290 | |
Property taxes | 5,500 | |
Miscellaneous costs | 10,220 |
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: | |||
$ | |||
$ | |||
$ | |||
Factory overhead: | |||
$ | |||
Total factory overhead | |||
Total manufacturing costs incurred during January | |||
Total manufacturing costs | $ | ||
Cost of goods manufactured | $ |
b. Determine the cost of goods sold for
January.
$
Cost of goods Manufactured: | |||||
Beginning inventory of Wip | 129690 | ||||
Current cost of production | |||||
Beginning inventory of RM | 196500 | ||||
Add: Purchase | 377280 | ||||
Total RM available | 573780 | ||||
Less: Ending inventory of RM | 170960 | ||||
Direct material used | 402820 | ||||
Direct Labour cost | 353700 | ||||
Factory overheads | |||||
Indirect Labour | 37730 | ||||
Machinery depreciation | 22790 | ||||
Heat light and Power | 7860 | ||||
Supplies | 6290 | ||||
Property taxes | 5500 | ||||
Misc. cost | 10220 | ||||
Total factory overheads | 90390 | ||||
Total Current Manufacturing cost | 846910 | ||||
Total cost of WIP | 976600 | ||||
Less: Ending inventory of WIP | 112830 | ||||
Cost of goods Manufactured: | 863770 | ||||
Cost of ggoods sold: | |||||
Beginning Inventory of FG | 102180 | ||||
Add: Cost of goods manufcatured | 863770 | ||||
Total cost of goods available for sale | 965950 | ||||
Less: Ending inventory of FG | 116250 | ||||
Cost of ggoods sold: | 849700 | ||||