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	$231,500		$201,410
Work in process	155,110		134,940
Finished goods	120,380		136,960

Direct labor		$416,700
Materials purchased during January		444,480
Factory overhead incurred during January:
	Indirect labor	44,450
	Machinery depreciation	26,850
	Heat, light, and power	9,260
	Supplies	7,410
	Property taxes	6,480
	Miscellaneous costs	12,040

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
Work in process inventory, January 1			$
Direct materials:
Materials inventory, January 1	$
Purchases
Cost of materials available for use	$
Materials inventory, January 31
Cost of direct materials used in production		$
Direct labor
Factory overhead:
Indirect labor	$
Machinery depreciation
Heat, light, and power
Supplies
Property taxes
Miscellaneous costs
Total factory overhead
Total manufacturing costs incurred during January
Total manufacturing costs			$
Work in process inventory, January 31
Cost of goods manufactured			$

Answer 1

Sandusky Manufacturing Company
Statement of Cost of Goods Manufactured
For the Month Ended January 31
Work in process inventory, January 1			$155,110
Direct materials:
Materials inventory, January 1	$231,500
Purchases	$444,480
Cost of materials available for use	$675,980
Materials inventory, January 31	$201,410
Cost of direct materials used in the production		$474,570
Direct labor		$416,700
Factory overhead:
Indirect labor	$44,450
Machinery depreciation	$26,850
Heat, light, and power	$ 9,260
Supplies	$ 7,410
Property taxes	$ 6,480
Miscellaneous costs	$12,040
Total factory overhead		$106,490
Total manufacturing costs incurred during January		$997,760
Total manufacturing costs		$1,152,870
Work in process inventory, January 31		$134,940
Cost of goods manufactured			$1,017,930