Question

Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during the current year. Indirect labor amounted to $2,700, while indirect materials used totaled $1,600. Other operating costs pertaining to the factory included utilities of $3,100, maintenance of $4,500, supplies of $1,800, depreciation of $7,900, and property taxes of $2,600. There was no beginning or ending finished goods inventory, but work in process inventory began the year with a $5,500 balance and ended the year with a $7,500 balance. Prepare a statement of cost of goods manufactured. Allen Company Statement of Cost of Goods Manufactured For the Year Ended December 31

Allen Company Statement of Cost of Goods ManufacturedFor the Year Ended December 31
Prepare a statement of cost of goods manufactured.
Allen Company
Statement of Cost of Goods Manufactured
For the Year Ended December 31
Beginning work in process inventory
Direct materials
Direct labor
Factory overhead
Indirect labor
Indirect materials
Total manufacturing costs incurred
Total manufacturing costs
Cost of goods manufactured

Answer 1

$130,200

Step-by-step explanation:

Allen Company

Statement of cost of goods manufactured

For year ended December 31

Opening work in progress inventory 5,500

Direct Materials 71,000

Direct Labour 37,000

Factory Overhead

Indirect Labour 2,700

Indirect Materials 1,600

Utilities 3,100

Maintenance 4,500

Supplies 1,800

Depreciation 7,900

Property Tax 2,600 24,200

Total manufacturing cost incurred 132,200

Total manufacturing cost 137,700

Less: Closing work in progress inventory 7,500

Cost of goods manufactured $130,200