Question

Statement of Cost of Goods Manufactured for a Manufacturing Company

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

Inventories	January 1		January 31
Materials	$233,750		$203,360
Work in process	154,280		134,220
Finished goods	121,550		138,280

Direct labor		$420,750
Materials purchased during January		448,800
Factory overhead incurred during January:
	Indirect labor	44,880
	Machinery depreciation	27,120
	Heat, light, and power	9,350
	Supplies	7,480
	Property taxes	6,550
	Miscellaneous costs	12,160

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
			$
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

Cost of goods manufactured statement

Direct materials:
Beginning raw material inventory	233,750
Add: Purchases of raw material	448,800
Total raw materials available	682,550
Less: Ending raw materials inventory	- 203,360
Raw materials used in production	479,190
Direct labor	420,750
Manufacturing overheads:
Indirect labor	44,880
Machinery depreciation	27,120
Heat, light, and power	9,350
Supplies	7,480
Property taxes	6,550
Miscellaneous costs	12,160
Total manufacturing cost	1,007,480
Add: Beginning work in process inventory	154,280
	1,161,760
Less: Ending work in process inventory	-134,220
Cost of goods manufactured	1,027,540

Schedule of cost of goods sold

Beginning finished goods inventory	121,550
Add: Cost of goods manufactured	1,027,540
Cost of goods available for sale	1,149,090
Less: Ending finished goods inventory	- 138,280
cost of goods sold	1,010,810

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