Question

Cost data for Mix-A-Lot Manufacturing Company for the month ended March 31, 2016, are as follows:

Inventories	March 1	March 31
Materials	$307,000	$277,600
Work in process	214,000	238,400
Finished goods	163,000	187,000

	March 31
Direct labor	$566,000
Materials purchased during the month	607,200
Factory overhead incurred during the month:
Indirect labor	60,860
Machinery depreciation	35,000
Heat, light, and power	12,800
Supplies	8,400
Property taxes	8,200
Miscellaneous costs	16,360

	Required:
A.	Prepare a cost of goods manufactured statement for March 2016. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. Enter all amounts as positive numbers.
B.	Determine the cost of goods sold for March 2016.

Answer 1

Requirement A. Cost of goods manufactured statement for March 2016

Mix-A-Lot Manufacturing Company
Cost of goods manufactured statement for March 2016
Work in process inventory, March 1			214,000
Direct materials:
Materials inventory, March 1, 2016	307,000
Purchases	607,200
Cost of materials available for use	914,200
Less materials inventory, March 31	277,600
Cost of direct materials used		636,600
Direct labor		566,000
Factory overhead:
Indirect labor	60,860
Machinery depreciation	35,000
Heat, light and power	12,800
Supplies	8,400
Property taxes	8,200
Miscellaneous costs	16,360
Total factory overhead		141,620
Total manufacturing costs incurred			1,344,220
Total manufacturing costs			1,558,220
Less work in process inventory, March 31			238,400
Cost of goods manufactured			1,319,820

Requirement B. Cost of goods sold for March 2016.

Finished goods inventory, March 1	163,000
Cost of goods manufactured	1,319,820
Less finished goods inventory, March 31	187,000
Cost of goods sold for March 2016	1,295,820