Question

Question 1                                                                                                           (Total: 18 marks)

The following information was taken from the accounting records of Dunbar Mifflin Company in 2018.

                                                                                             Beginning of 2018             Ending of 2018

Direct materials inventory                                         135,000                                 83,000

Work-in-process inventory                                       185,000                                 154,000

Finished-goods inventory                                          255,000                                 216,000

Purchases of direct materials                                                                                   270,000

Direct manufacturing labor                                                                                       225,000

Indirect manufacturing labor                                                                                    103,000

Plant insurance                                                                                                              11,000

Depreciation-plant, building, and equipment                                                    48,000

Plant utilities                                                                                                                   29,500

Repairs and maintenance-plant                                                                              13,500

Equipment leasing costs                                                                                             66,800

Marketing, distribution, and customer-service costs                                      129,500

General and administrative costs                                                                           72,500

Required:

1. Prepare a schedule of cost of goods manufactured.

Answer 1

Schedule of Cost of Goods manufactured
Direct Materials
Raw Material, Beginning Inventory	$         135,000
Add: Purchases	$         270,000
Total Raw Material Available	$         405,000
Deduct : Raw Material in inventory, ending	$           83,000
Raw Material used in production		$         322,000
Direct Labor		$         270,000
Manufacturing Overhead
Indirect manufacturing labor	$         103,000
Plant insurance	$           11,000
Depreciation-plant, building, and equipment	$           48,000
Plant utilities	$           29,500
Repairs and maintenance-plant	$           13,500
Equipment leasing costs	$           66,800	$         271,800
Total Manufacturing Costs		$         863,800
Add: Beginning Work in Process Inventory		$         185,000
		$      1,048,800
Deduct: Ending Work in Process Inventory		$         154,000
Cost of Goods Manufactured		$         894,800