Question

From the account balances listed below, prepare a schedule of cost of goods manufactured for Sampson Manufacturing Company for the month ended December 31, 2016.

Account Balances
Finished Goods Inventory, December 31 $42,000
Factory Supervisory Salaries 12,000
Income Tax Expense 18,000
Raw Materials Inventory, December 1 12,000
Work In Process Inventory, December 31 15,000
Sales Salaries Expense 14,000
Factory Depreciation Expense 8,000
Finished Goods Inventory, December 1 35,000
Raw Materials Purchases 105,000
Work In Process Inventory, December 1 25,000
Factory Utilities Expense 6,000
Direct Labor 70,000
Raw Materials Inventory, December 31 19,000
Sales Returns and Allowances 5,000
Indirect Labor 21,000

Answer 1

Answer and Explanation:

The preparation of the schedule of cost of goods manufactured is presented

Opening work in process $25,000

Direct materials

Opening December 1 $12,000

Add: Purchase of raw material purchase $105,000

Total raw materials available for use $117,000

less: Ending raw material inventory -$19,000

Direct materials used $98,000

Direct labour $70,000

manufacturing overhead

indirect labour $21,000

Factory supervisor salaries $12,000

factory depreciation expense $8,000

factory utility expense $6,000

Total manufacturing overhead $47,000

Total manufacturing costs (direct materials used + direct labour + manufacturing overhead) $215,000

Total cost of work in process ($25,000 +$215,000) $240,000

Less: Closing work in process -$15,000

cost of goods manufactured $225,000