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A. Prepare a cost of goods manufactured statement for January.

b. Determine the cost of goods sold for January.

Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows:

Inventories January 1 January 31
Materials $314,000 $276,800
Work in process 216,000 239,800
Finished goods 163,200 189,000


January 31
Direct labor $567,000
Materials purchased during the month 606,600
Factory overhead incurred during the month:
Indirect labor 60,520
Machinery depreciation 32,000
Heat, light, and power 12,200
Supplies 8,220
Property taxes 8,880
Miscellaneous costs 16,460

User Janier
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1 Answer

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Answer:

a.Cost OF Goods Manufactured $ 1324,680

b.Cost OF Goods Sold 1298,880

Step-by-step explanation:

Sandusky Manufacturing Company

Cost of Goods Manufactured Statement

For the Month Ended January 31

Materials Inventories Beginning $314,000

Add Materials purchased during the month 606,600

Less Materials Inventories January 31 Ending $276,800

Total Materials Used $ 643,800

Direct labor $567,000

Factory overhead incurred during the month: $ 138280

Indirect labor 60,520

Machinery depreciation 32,000

Heat, light, and power 12,200

Supplies 8,220

Property taxes 8,880

Miscellaneous costs 16,460

Total Manufacturing Costs 1349,080

Add Work in process Beginning 216,000

Cost OF Goods Available For Manufacture $ 1565,080

Less Work in process Ending 239,800

Cost OF Goods Manufactured $ 1325,280

The Cost OF Goods Manufactured Statement is obtained by the following formula

Cost OF Goods Manufactured = Materials used+ direct labor+ FOH + WIP Beginning - WIP Ending.

Sandusky Manufacturing Company

Cost of Goods Sold Statement

For the Month Ended January 31

Cost OF Goods Manufactured $ 1325,280

Add Finished goods Beginning 163,200

Cost OF Goods Available For Sale 1488,480

Less Finished goods Ending 189,000

Cost OF Goods Sold 1299,480

The Cost OF Goods Sold Statement is obtained by the following formula

Cost OF Goods Sold = Cost OF Goods Manufactured+ FG Beginning - FG Ending.

User Apramc
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