Question

Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows:

Inventories	January 1	January 31
Materials	$305,000	$277,200
Work in process	214,200	238,600
Finished goods	162,800	190,500

	January 31
Direct labor	$562,000
Materials purchased during the month	607,000
Factory overhead incurred during the month:
Indirect labor	60,600
Machinery depreciation	36,000
Heat, light, and power	12,900
Supplies	8,100
Property taxes	8,720
Miscellaneous costs	16,300

	Required:
	a. Prepare a cost of goods manufactured statement for January. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
	b. Determine the cost of goods sold for January.

Answer 1

Schedule of cost of goods manufactured :

Direct material used
Beginning raw material	305000
Purchase of raw material	607000
Raw material available for production	912000
Less; Ending raw material	-277200
Direct material used in production		634800
Direct labour		562000
Manufacturing overhead
Indirect labour	60600
Machinery depreciation	36000
Heat, light, and power	12900
Supplies	8100
Property taxes	8720
Miscellaneous costs	16300
Total manufacturing overhead		142620
Total manufacturing cost		1339420
Beginning work in process		214200
Total cost of work in process		1553620
Less: Ending work in process		-238600
Cost of goods manufactured		1315020

Cost of goods sold schedule:

Beginning finished goods inventory	162800
Cost of goods manufacturing	1315020
Cost of goods available for sale	1477820
Less; Ending finished goods inventory	-190500
cost of goods sold	1287320