Question

Rocket Company produces small gasoline-powered engines for model airplanes. Mr. Clemens, Rocket�s CFO, has presented you with the following cost information: Direct Materials Inventory, beginning $ 81,000 Direct Materials Inventory, ending $ 126,000 Work in Process Inventory, beginning $ 140,000 Work in Process Inventory, ending $ 95,000 Direct labor $ 790,000 Direct materials purchases $ 980,000 Insurance, factory $ 52,000 Depreciation, factory $ 27,000 Depreciation, executive offices $ 12,000 Indirect labor $ 210,000 Utilities, factory $ 17,000 Utilities, executive offices $ 9,000 Property taxes, factory $ 16,000 Property taxes, executive offices $ 12,000 Using this cost information, prepare a cost of goods manufactured schedule for Mr. Clemens.

Answer 1

Step-by-step explanation:

There’s a format in computing cost of goods produced schedule, I have included some items that although weren’t given in the question would be useful as you study. The question required me to find just cost of goods produced, note that you could be further required to compute Net profit all that you need to do then is to include items of finished goods and deduct all expenses.