Question

What is the schedule of cost of goods manufactured for the Peterson Corp?

Answer 1

The schedule of cost of goods manufactured is a financial statement that shows the costs incurred in the production of goods during a specific period.

Step-by-step explanation:

The schedule of cost of goods manufactured is a financial statement that shows the costs incurred in the production of goods during a specific period. It includes direct materials, direct labor, and manufacturing overhead.

To calculate the cost of goods manufactured, you need to add the direct materials used, direct labor, and manufacturing overhead to the beginning inventory of work in process and subtract the ending inventory of work in process.

In the case of the Peterson Corp, we have the following information:

• Pd 1 - Amount spent: $60
• Pd 2 - Amount spent: $64
• Pd 3 - Amount spent: $62
• Pd 4 - Amount spent: $70

To determine the cost of goods manufactured, add up the amounts spent for each period and subtract the ending inventory of work in process. Let's assume there was no beginning inventory of work in process. The schedule of cost of goods manufactured for the Peterson Corp would be:

1. Total amount spent: $60 + $64 + $62 + $70 = $256
2. Ending inventory of work in process: $0 (assuming no beginning inventory)
3. Cost of goods manufactured: Total amount spent - Ending inventory of work in process = $256 - $0 = $256