Question

Begin by preparing the schedule of cost of goods manufactured​ (in millions). Start with the direct materials and labor​ costs, then indirect manufacturing​ costs, and finally complete the schedule by calculating the cost of goods manufactured.

Answer 1

Suppose (open) Finished goods= 171000

Opening work in process = 63000

ending work in process = 84000

Opening material = 72000

Raw material purchased during the year = 467000

Raw material (ending) = 93000

Actual labour hour used = 6000 hours

Predetermind rate = $6/hour

units produced= 100 units

Step-by-step explanation:

Step#1- Calculate Total manufacturing cost=?

total manufacturing cost = direct materiel used + direct labor used + Factory overhead.

= 446000+600000+36000=1082000

Direct material used=?

(Opening) Raw material = 72000

Ad:: Raw material purchased =467000

539000

less: Raw material (ending) = (93000)

Raw material used 446000

Labour used=?

labour used = number of labour hours to produce* units produced

= 6000 * 100 =600000

Indirect overhead =?

Indirect overhead = predetermined overhead rate * labour hour used

= 6 * 6000= 36000

Schedule of cost of goods manufactured=?(COGM)

Total manufacturing cost = 1082000

Add: work in process (open) = 63000

1145000

less: work in process (end) = ( 84000)

Cost of goods manufactured 1061000