Question

The following information is available for Marks Company at December 31, 2019:

1.Inventory balance Beginning of Year End of Year
Finished Goods $14,000 $10,000
Work in Process 6,000 12,000
Raw Materials 10,300 6,500
2. Debit postings to Work in Process Inventory during the year were:
Direct materials $90,000
Direct labor 60,000
Manufacturing overhead applied 75,000
3. Sales totaled $310,000 for the year.
Prepare a condensed cost of goods manufactured schedule.

Answer 1

To prepare the cost of goods manufactured schedule, total direct materials used are calculated as $93,800, followed by adding direct labor and manufacturing overhead, and adjusting for work in process. The final cost of goods manufactured is $222,800.

Step-by-step explanation:

Cost of Goods Manufactured Schedule

To prepare a condensed cost of goods manufactured schedule for Marks Company, we need to calculate the total manufacturing costs incurred during the year by adding direct materials used, direct labor, and manufacturing overhead.

First, we calculate the total direct materials used:

• Beginning Raw Materials: $10,300
• + Direct Materials Purchased: $90,000
• - Ending Raw Materials: $6,500
• = Direct Materials Used: $93,800

Now we summarize the cost of goods manufactured:

• Total Direct Materials Used: $93,800
• + Direct Labor: $60,000
• + Manufacturing Overhead Applied: $75,000
• + Beginning Work in Process: $6,000
• - Ending Work in Process: $12,000
• = Cost of Goods Manufactured: $222,800