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	$150,250		$127,710
Work in process	99,170		84,290
Finished goods	76,630		85,570

Direct labor		$270,450
Materials purchased during January		288,480
Factory overhead incurred during January:
	Indirect labor	28,850
	Machinery depreciation	17,430
	Heat, light, and power	6,010
	Supplies	4,810
	Property taxes	4,210
	Miscellaneous costs	7,810

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
			$
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

a
Disksan Manufacturing Company
Statement of Cost of Goods Manufactured
For the Month Ended January 31
Work in process inventory, January 1			99170
Direct materials:
Materials inventory, January 1	150250
Purchases	288480
Cost of materials available for use	438730
Materials inventory, January 31	127710
Cost of direct materials used in production		311020
Direct labor		270450
Factory overhead:
Indirect labor	28850
Machinery depreciation	17430
Heat, light, and power	6010
Supplies	4810
Property taxes	4210
Miscellaneous costs	7810
Total factory overhead		69120
Total manufacturing costs incurred during January			650590
Total manufacturing costs			749760
Work in process inventory, January 31			84290
Cost of goods manufactured			665470
b
Finished goods, January 1	76630
Add: Cost of goods manufactured	665470
Cost of goods available for sale	742100
Less: Finished goods, January 31	85570
Cost of goods sold	656530