Question

Statement of Cost of Goods Manufactured for a Manufacturing Company

Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows:
Inventories January 1 January 31
Materials $196,000 $176,400
Work in process135,240 121,720
Finished goods 99,960 118,190
Direct labor $352,800
Materials purchased during January 376,320
Factory overhead incurred during January:
Indirect labor 37,630
Machinery depreciation 22,740
Heat, light, and power 7,840
Supplies 6,270
Property taxes 5,490
Miscellaneous costs 10,190
a. Prepare a cost of goods manufactured statement for January.
Sandusky Manufacturing Company
Statement of Cost of Goods Manufactured
For the Month Ended January 31
Work in process inventory, January 1 $
Direct materials:
Materials inventory, January 1 $
Purchases
Cost of materials available for use $
Materials inventory, January 31
Cost of direct materials used in production $
Direct labor
Factory overhead:
Indirect labor $
Machinery depreciation
Heat, light, and power
Supplies
Property taxes
Miscellaneous costs
Total factory overhead
Total manufacturing costs incurred during January
Total manufacturing costs $
Work in process inventory, January 31
Cost of goods manufactured $
Feedback
b. Determine the cost of goods sold for January.
$

Answer 1

a. Cost of goods manufactured statement for January.

Work in process inventory, January 1 $ 135,240

Direct materials:

Materials inventory, January 1 $ 196,000

Purchases $376,320

Cost of materials available for use $ 572,320

Materials inventory, January 31 ($176,400)

Cost of direct materials used in production $ 395,920

Direct labor $352,800

Factory overhead:

Indirect labor $ 37,630

Machinery depreciation $22,740

Heat, light, and power $7,840

Supplies $6,270

Property taxes $5,490

Miscellaneous costs $10,190

Total factory overhead $90,160

Total manufacturing costs incurred during January $442,950

Total manufacturing costs $ 442,950

Work in process inventory, January 31 ($121,720)

Cost of goods manufactured $456,470

b. Determine the cost of goods sold for January.

Beginning Finished goods Inventory $99,960

Add Cost of goods manufactured $456,470

Less Ending Finished goods Inventory ($118,190)

Cost of goods sold $438,240

Step-by-step explanation:

The Costs of Goods Manufactured is obtained from preparing a manufacturing cost schedule. This is an accumulation of all manufacturing costs.

The cost of goods sold is obtained by preparing Finished Goods Account or schedule as above.