Question

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

Inventories January 1 January 31
Materials $180,000 $145,500
Work in process 334,600 290,700
Finished goods 675,000 715,000

Direct labor $2,260,000
Materials purchased during January 1,375,000
Factory overhead incurred during January:

Indirect labor 115,000
Machinery depreciation 90,000
Heat, light, and power 55,000
Supplies 18,500
Property taxes 10,000
Miscellaneous costs 33,100

Required:
Prepare a cost of goods manufactured statement for January

Answer 1

Cost of goods sold (cogs): 3,995,000

Step-by-step explanation:

(Everything else above is correct, just cogs is wrong according to my hw)

Math goes as follows: 4,035,000+675,000+4,710,000-715,000=3,995,000.

675,000 is finished goods on january 1st, and 715,000 is finished goods on january 31st.

Answer 2

Answer and Explanation:

The preparation of the cost of goods manufactured is presented below:

Sandusky Manufacturing Company

Statement of Cost of Goods Manufactured

For the month ended January 31

Opening Work In Progress Inventory $334,600

Direct Material:

Opening Material Inventory, $180,000

Add: Purchases during January $1,375,000

Cost of Materials available for use $1,555,000

Less: Ending Inventory -$145,500

Cost of Direct Materials used in Production $1,409,500

Direct Labor $2,260,000

Factory Overhead:

Indirect Labor $115,000

Machinery depreciation $90,000

Heat, Light and Power $55,000

Supplies $18,500

Property Taxes $10,000

Miscelleneous Costs 33,100

Total Factory Overhead $321,600

Total Manufacturing Cost $3,991,100

Total Manufacturing Costs $4,325,700

Less: Closing wip inventory $290,700

Cost of Goods Manufatured $4,035,000

Note

Total manufacturing costs = Starting Work in Progress + Total Manufact. Cost Incurred during Jan.

Total manufacturing costs = $334,600 + $3,991,100 = $4,325,700