Question

Statement of Cost of Goods Manufactured for a Manufacturing Company

Cost data for Johnstone Manufacturing Company for the month ended March 31 are as follows:
Inventories March 1 March 31
Materials $177,250 $159,530
Work in process 116,990 105,290
Finished goods 92,170 106,890
Direct labor $319,050
Materials purchased during March 340,320
Factory overhead incurred during March:
Indirect labor 34,030
Machinery depreciation 20,560
Heat, light, and power 7,090
Supplies 5,670
Property taxes 4,960
Miscellaneous costs 9,220
Prepare a cost of goods manufactured statement for March.
Johnstone Manufacturing Company
Statement of Cost of Goods Manufactured

Answer 1

Johnstone Manufacturing Company

Statement of Cost of Goods Manufactured

Raw Materials $298,040

Direct labor $319,050

Factory overhead incurred :

Indirect labor $34,030

Machinery depreciation $20,560

Heat, light, and power $7,090

Supplies $5,670

Property taxes $4,960

Miscellaneous costs $9,220

Add Opening Work in process Inventory $116,990

Less Closing Work in process Inventory (105,290)

Cost of Goods Manufactured $710,320

Step-by-step explanation:

Cost of Goods Manufactured Statement, is a summary of costs incurred to manufacture products.

Calculation of Raw Materials used in Production.

Raw Materials T - Account

Debit :

Opening Balance $177,250

Purchases $340,320

Totals $457,570

Credit :

Closing Balance $159,530

Work In Process (Balancing figure) $298,040

Totals $457,570