Question

Cost of Goods Manufactured and Sold

Direct labor cost $495,900
Purchases of direct materials 378,890
Freight-in on materials 7,500
Factory supplies used 18,500
Factory Utilities 54,000
Commissions paid 78,983
Factory supervision and indirect labor 165,000
Advertising 145,600
Materials handling 16,900
Work-in-process inventory, January 1 201,000
Work-in-process inventory, December 31 117,400
Direct materials inventory, January 1 37,200
Direct materials inventory, December 31 34,600
Finished goods inventory, January 1 59,200
Finished goods inventory, December 31 62,700
Anglin Company, a manufacturing firm, has supplied the following information from its accounting records for the last calendar year:
1. Prepare a cost of goods manufactured statement.
2. Prepare a cost of goods sold statement.

Answer 1

Schedule for manufacturing cost

Beginning raw material 37200

Add Purchase of raw material 378890

Add Freight in on materials 7500

Total 423590

Less Ending Raw material 34600

Raw material used in production 388990

Add Direct labor 495900

Manufacturing overheads

Factory supplies 18500

Factory utilities 54000

Factory supervision and indirect labor 165000

Material handling 16900

Add Total overhead cost 254400

Total manufacturing cost 1139290

Cost of goods sold statement

Total manufacturing cost 1139290

Add Beginning work in progress 201000

1340290

Less Ending work in progress 117400

Cost of goods manufactured 1222890

Add Beginning finished goods inventory 59200

Cost of goods available for sale 1282090

Less Ending finished goods inventory 62700

Cost of goods sold 1219390