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	$153,250		$134,860
Work in process	101,150		89,010
Finished goods	78,160		91,700

Direct labor		$275,850
Materials purchased during January		294,240
Factory overhead incurred during January:
	Indirect labor	29,420
	Machinery depreciation	17,780
	Heat, light, and power	6,130
	Supplies	4,900
	Property taxes	4,290
	Miscellaneous costs	7,970

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

Solution

Ans:

a. Prepare a cost of goods manufactured statement for January
F. Mills Manufacturing Company
Statement of Cost of Goods Manufactured
For the Month Ended January 31
Work in process inventory, January 1			101,150
Direct materials:
Materials inventory, January 1	153,250
Purchases	294,240
Materials inventory, January 31	-134,860	312,630
Direct Labour		275,850
Factory overhead:
Indirect labor	29,420
Machinery depreciation	17,780
Heat, light, and power	6,130
Supplies	4,900
Property taxes	4,290
Miscellaneous costs	7,970
Total factory overhead		70,490
Total manufacturing costs incurred during January			658,970
Total manufacturing costs			760,120
Less: Ending work in process			-89,010
Cost of goods manufactured			671,110
Cost of goods sold = 78,160+671,110-89,010 = 660,260

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