Question

Coronado Company produces small gasoline-powered engines for model airplanes. Mr. Clemens, Coronado’s CFO, has presented you with the following cost information:

	Direct Materials Inventory, beginning		$	83,000
	Direct Materials Inventory, ending		$	122,000
	Work in Process Inventory, beginning		$	160,000
	Work in Process Inventory, ending		$	98,200
	Direct labor		$	760,000
	Direct materials purchases		$	947,000
	Insurance, factory		$	59,400
	Depreciation, factory		$	24,300
	Depreciation, executive offices		$	15,400
	Indirect labor		$	228,000
	Utilities, factory		$	18,900
	Utilities, executive offices		$	8,600
	Property taxes, factory		$	18,300
	Property taxes, executive offices		$	11,200

Using this cost information, prepare a cost of goods manufactured schedule for Mr. Clemens.

Answer 1

Solution

Mr. Clemens.
Schedule of Cost of Goods Manufactured
Direct Material
Raw material Inventory Beginning	$        83,000.00
Raw material Purchased	$     947,000.00
Raw material available for use	$ 1,030,000.00
Less: Raw material Inventory Ending	$        98,200.00
Direct Material Used		$      931,800.00
Direct labor		$      760,000.00
Manufacturing overheads
Insurance, factory	$        59,400.00
Depreciation, factory	$        24,300.00
Indirect labor	$     228,000.00
Utilities, factory	$        18,900.00
Property taxes, factory	$        18,300.00
Total Manufacturing overheads		$      348,900.00
Total manufacturing Cost During the month		$   2,040,700.00
Add: Work in process Beginning		$      160,000.00
Total Work in Process		$   2,200,700.00
Less: Work in progress Ending		$         98,200.00
Cost of Goods Manufactured		$   2,102,500.00