Question

Cost of Goods Manufactured and Sold Anglin Company, a manufacturing firm, has supplied the following information from its accounting records for the last calendar year:

Direct labor cost $494,890
Purchases of direct materials 377,110
Freight-in on materials 7,300
Factory supplies used 18,130
Factory utilities 52,290
Commissions paid 79,258
Factory supervision and indirect labor 162,840
Advertising 146,240
Materials handling 16,180
Work-in-process inventory, January 1 204,630
Work-in-process inventory, December 31 117,380
Direct materials inventory, January 1 37,040
Direct materials inventory, December 31 36,100
Finished goods inventory, January 1 59,290
Finished goods inventory, December 31 63,240
A. Prepare a cost of goods manufactured statement.
B. Prepare a cost of goods sold statement.

Answer 1

a. Anglin company

Schedule of cost of goods manufactured

Direct Material:

Direct Material, January 1 $37,040

Add: Purchase of direct Material $377,110

Freight in on materials $7,300

Materials available $421,450

Less: Direct Material, Dec 31 $36,100

Direct Materials used in production $385,350

Direct manufacturing Labor $494,890

Manufacturing Overhead

Factory supplies used $18,130

Factory utilities $52,290

Factory supervision and indirect labor $162,840

Materials handling $16,180

Total Manufacturing overhead $249,440

Total Manufacturing Costs added $1,129,680

Add: Work in Process, January 1 $204,630

Less: Work in Process, Dec 31 $117,380

Cost of goods manufactured $1,451,690

b. Anglin Company

Schedule of cost of goods sold

Cost of goods manufactured $1,451,690

Add: Finished goods, January 1 $59,290

Total Cost of goods available for sale $1,510,980

Less: Finished Goods, Dec 31 $63,240

Cost of goods sold $1,447,740