Question

Statement of Cost of Goods Manufactured for a Manufacturing Company

A payment of cash (or a commitment to pay cash in the future) for the purpose of generating revenues.Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows:

Inventories	January 1		January 31
Materials	$175,500		$154,440
Work in process	121,100		106,560
Finished goods	91,260		103,470

Direct labor		$315,900
Materials purchased during January		336,960
Factory overhead incurred during January:
	Indirect labor	33,700
	Machinery depreciation	20,360
	Heat, light, and power	7,020
	Supplies	5,620
	Property taxes	4,910
	Miscellaneous costs	9,130

a. Prepare a cost of goods manufactured statement for January.

Sandusky Manufacturing Company
Statement of Cost of Goods Manufactured
For the Month Ended January 31
Indirect laborMachinery depreciationSuppliesWork in process inventory, January 1			$
Direct materials:
Machinery depreciationMaterials inventory, January 1SuppliesWork in process inventory, January 31	$
Indirect laborProperty taxesPurchasesWork in process inventory, January 31
Cost of materials available for useLess work in process inventory, January 31SuppliesWork in process inventory, January 31	$
Indirect laborMaterials inventory, January 31Miscellaneous costWork in process inventory, January 31
Cost of direct materials used in productionLess work in process inventory, January 31Materials inventory, January 1Total manufacturing costs		$
Direct laborIndirect laborMachinery depreciationSupplies
Factory overhead:
Indirect laborMaterials inventory, January 1Materials inventory, January 31Purchases	$
Direct laborMachinery depreciationPurchasesWork in process inventory, January 31
Direct laborHeat, light, and powerMaterials inventory, January 1Work in process inventory, January 31
Direct laborMaterials inventory, January 1PurchasesSupplies
Materials inventory, January 31Property taxesPurchasesWork in process inventory, January 31
Direct materialsMiscellaneous costsPurchasesWork in process inventory, January 31
Total factory overhead
Total manufacturing costs incurred during January
Total manufacturing costs			$
Cost of materials available for useDirect materialsMaterials inventory, January 31Work in process inventory, January 31
Cost of goods manufactured			$

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b. Determine the The cost of finished goods available for sale minus the ending finished goods inventory.cost of goods sold for January.

Answer 1

Statement of cost of goods manufactured
Work in process inventory,Jan 1							121,100
Direct materials
Materials inventory,January 1					175,500
purchases					336,960
Cost of materials available for use					512,460
Materials inventory,January 31					154,440
indirect labor					0
cost of direct materials used in production						358,020
Direct labor						315,900
Factory overhead:
Indirect labor					33,700
Machinery depreciation					20,360
Heat,light and power					7,020
Supplies					5,620
property taxes					4,910
miscellaneous costs					9,130
total factory overhead						80,740
total manufacturing costs incurred during janauary							754,660
total manufacturing costs.							875,760
Work in process inventory,Jan 31							106,560
Cost of goods manufactured							769,200
b)
finished goods inventory,January 1						91,260
Add:Cost of goods manufactured						769,200
cost of goods available for sale						860,460
finished goods inventory,January 31						103,470
cost of goods sold						756,990