Question

The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2020.

Raw Materials Inventory 7/1/19		$48,000		Factory Insurance		$4,600
Raw Materials Inventory 6/30/20		39,600		Factory Machinery Depreciation		16,000
Finished Goods Inventory 7/1/19		96,000		Factory Utilities		27,600
Finished Goods Inventory 6/30/20		75,900		Office Utilities Expense		8,650
Work in Process Inventory 7/1/19		19,800		Sales Revenue		534,000
Work in Process Inventory 6/30/20		18,600		Sales Discounts		4,200
Direct Labor		139,250		Plant Manager’s Salary		58,000
Indirect Labor		24,460		Factory Property Taxes		9,600
Accounts Receivable		27,000		Factory Repairs		1,400
				Raw Materials Purchases		96,400
				Cash		32,000

Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.)

Answer 1

Particulars	Amount
Direct Material consumed	$       1,04,800
Add :Direct labor	$       1,39,250
Add: Manufacturing overhead
> Indirect labor	$           24,460
> Factory insurance	$             4,600
> Factory machinary depreciation	$           16,000
> Factory utilities	$           27,600
> Plant mangers salary	$           58,000
> Factory property taxes	$             9,600
> Factory repairs	$             1,400
Total manufacturing costs	$       3,85,710
Add: Beginning work in process	$           19,800
Less: Ending work in process	$           18,600
Cost of goods manufactured	$       3,86,910
Note : Office utilities Expense is not taken in Cost of goods manfactured schedule
because it is an administrative expense.
Direct Material consumed   =   Purchases + Beginning inventory - Ending inventory
= $96400 + $48000 - $39600
= $104800