Question

The following information was taken from Macondo Company records for the year 2019.

Raw Materials inventory, 1/12/2019 $ 48,000
Raw Materials inventory, 12/31/209 39,600
Direct labor 139,250
Indirect labor 24,460
Depreciation, factory Machinery 16,000
Raw materials Purchases 96,400
Factory utilities Expense 27,600
Work in process inventory 1/12/2019 19,800
Work in process inventory 12/31/2019 18,600
Finished Goods inventory 1/12/2019 96,000
Finished Goods inventory 12/31/2019 75,900
Factory Property taxes Expense 9,600
Factory Repairs Expense 1,400
Factory Insurance Expense 4,600
Office Utilities Expense 8,650
Plant Manager’s Salary Expnse 58,000
Instructions:
1. Prepare a Cost of Goods Manufactured report for December 31, 2019.

2. Prepare a Cost of Goods Sold report for December 31, 2019

Answer 1

Statement of cost of goods manufactured

Direct materials
Raw materials beginning	$48,000
Add: Purchase of raw materials	$96,400
Raw materials available for use	$144,400
Less: Raw materials, Ending	($39,600)
Direct materials used		$104,800
Direct labor		$139,250
Manufacturing overhead:
Indirect labor	$24,460
Depreciation, Factory machinery	$16,000
Factory utilities	$27,600
Factory property taxes expenses	$9,600
Factory repairs expenses	$1,400
Factory insurance expense	$4,600
Plant managers salary expense	$58,000
Total manufacturing overhead		$141,600
Total manufacturing costs		$385,710
Add: Work in process, Beginning		$19,800
Total cost of work in process		$405,510
Less: Work in process, Ending		($18,600)
Cost of goods manufactured		$386,910

Statement of Cost of goods sold

Beginning finished goods	$96,000
Add: cost of goods manufactured	$386,910
Cost of goods available for sale	$482,910
Less : Ending finished goods	($75,900)
Cost of goods sold	$407,010