In: Accounting
Anglin Company, a manufacturing firm, has supplied the following information from its accounting records for the last calendar year:
Direct labor cost | $494,140 |
Purchases of direct materials | 378,090 |
Freight-in on materials | 7,360 |
Factory supplies used | 18,320 |
Factory utilities | 54,930 |
Commissions paid | 78,322 |
Factory supervision and indirect labor | 162,420 |
Advertising | 146,890 |
Materials handling | 15,960 |
Work-in-process inventory, January 1 | 204,880 |
Work-in-process inventory, December 31 | 118,460 |
Direct materials inventory, January 1 | 39,100 |
Direct materials inventory, December 31 | 35,400 |
Finished goods inventory, January 1 | 61,330 |
Finished goods inventory, December 31 | 61,790 |
Required:
1. Prepare a cost of goods manufactured statement.
Anglin Company | ||
Statement of Cost of Goods Manufactured | ||
For the Year Ended December 31 | ||
Direct materials: | ||
Beginning inventory | $ | |
Add: Purchases | ||
Add: Freight-in on materials | ||
Materials available | $ | |
Less: Ending inventory | ||
Direct materials used in production | $ | |
Direct labor | ||
Manufacturing overhead: | ||
Factory supplies | $ | |
Factory utilities | ||
Factory supervision and indirect labor | ||
Materials handling | ||
Total overhead costs | ||
Total manufacturing costs added | $ | |
Add: Beginning work in process | ||
Less: Ending work in process | ||
Cost of goods manufactured | $ |
2. Prepare a cost of goods sold statement.
Anglin Company | |
Statement of Cost of Goods Sold | |
For the Year Ended December 31 | |
Cost of goods manufactured | $ |
Add: Beginning finished goods inventory | |
Cost of goods available for sale | $ |
Less: Ending finished goods inventory | |
Cost of goods sold | $ |
Cost of goods manufactured
Direct material
Beginning inventory $39100
Add: purchases $378090
Freight in 7360
Available =$424,550
Less: ending inventory =$118460
Direct material used in production =$306,090
Direct labor =$494,140
Overheads:
Factory supplies =$18,320
Factory utilities =$54,930
Factory supervision and indirect labor =$162,420
Material handling =$15960
Total overhead costs =$251,630
Total manufacturing costs =$1,051,860
Add: beginning work in process inventory =$204,880
Less: ending work in process inventory =$118460
Cost of goods manufactured =$1,138,280
Cost of goods sold:
Cost of goods manufactured =1,138,280
Add: beginning finished goods inventory =$61330
Cost of goods available =$1,199,610
Less: ending finished goods inventory =$61790
Cost of goods sold =$1,137,820