Question

Messinger Manufacturing Company had the following account balances for the quarter ending March 31, unless otherwise noted:
Accounts Amount
Work-in-process inventory (January 1) $ 140,400
Work-in-process inventory (March 31) 171,000
Finished goods inventory (January 1) 540,000
Finished goods inventory (March 31) 510,000
Direct materials used 378,000
Indirect materials used 84,000
Direct manufacturing labor 480,000
Indirect manufacturing labor 186,000
Property taxes on manufacturing plant building 28,800
Salespersons' company vehicle costs 12,000
Depreciation of manufacturing equipment 264,000
Depreciation of office equipment 123,600
Miscellaneous plant overhead 135,000
Plant utilities 92,400
General office expenses 305,400
Marketing distribution costs 30,000

In an Excel spreadsheet, using the format on page 42 of your textbook, prepare the following: Statement of cost of goods manufactured for the period ended March 31. Statement of cost of goods sold for the period ended March 31.

Answer 1

Messinger Manufacturing Company
Cost of goods Manufactured Schedule
For the Month Ended March 31.
Work in Process inventory, January 1			$ 140,400
Direct Materials Used		$ 378,000
Direct Labor		$ 480,000
Manufacturing Overhead:
Indirect Labor	$ 186,000
Indirect Material Used	$ 84,000
Depreciation on manufacturing equipment	$ 264,000
Property taxes on manufacturing plant building	$ 28,800
Plant utilities	$ 92,400
Miscellaneous Plant Overheads	$ 135,000
Total Manufacturing Overheads		$ 790,200
Total Manufacturing Costs			$ 1,648,200
Total Cost of goods available			$ 1,788,600
Less: Work in process inventory, March 31			($ 171,000)
Cost of goods Manufactured			$ 1,617,600

Messinger Manufacturing Company
Cost of goods Sold
For the Month Ended March 31.
Cost of goods Manufactured			$ 1,617,600
Add Beginning Finished Goods Inventory			$ 540,000
deduct: Ending finished goods inventory			($ 510,000)
Cost of goods sold			$ 1,647,600