Question

Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows: Inventories January 1 January 31 Materials $142,500 $125,400 Work in process 98,330 86,530 Finished goods 72,680 85,270 Direct labor $256,500 Materials purchased during January 273,600 Factory overhead incurred during January: Indirect labor 27,360 Machinery depreciation 16,530 Heat, light, and power 5,700 Supplies 4,560 Property taxes 3,990 Miscellaneous costs 7,410 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 $ Direct materials: $ $ $ Factory overhead: $ Total factory overhead Total manufacturing costs incurred during January Total manufacturing costs $ Cost of goods manufactured $ b. Determine the cost of goods sold for January. $

Answer 1

Sandusky Manufacturing company
Schedule of Cost of Goods Manufactured
Direct Material
Raw material Inventory Beginning	$   1,42,500.00
Raw material Purchased	$   2,73,600.00
Raw material available for use	$   4,16,100.00
Less: Raw material Inventory Ending	$   1,25,400.00
Direct Material Used		$    2,90,700.00
Direct labor		$    2,56,500.00
Manufacturing Overheads
Indirect Labor	$      27,360.00
depreciation-Equipment	$      16,530.00
Heat light and power	$         5,700.00
Supplies	$         4,560.00
Property taxes	$         3,990.00
Miscellaneous cost	$         7,410.00
Total Manufacturing Overheads		$        65,550.00
Total manufacturing Cost incurred during the period		$    6,12,750.00
Add: Work in process Beginning		$        98,330.00
Total Manufacturing cost to account for		$    7,11,080.00
Less: Work in progress Ending		$        86,530.00
Cost of Goods Manufactured		$    6,24,550.00

Sandusky Manufacturing company
Schedule of cost of good sold
Beginning Finished Goods Inventory		$        72,680.00
Cost of Goods manufactured		$    6,24,550.00
Goods Available for sale		$    6,97,230.00
Less :Ending Finished goods Inventory		$        85,270.00
Cost of Goods Sold		$    6,11,960.00