Question

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.
$

Answer 1

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