Answer:
a. Cost of goods manufactured statement for January.
Work in process inventory, January 1 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â $ 135,240
Direct materials:
Materials inventory, January 1 Â Â Â Â Â Â Â Â Â Â $ 196,000
Purchases                            $376,320
Cost of materials available for use       $ 572,320
Materials inventory, January 31 Â Â Â Â Â Â Â Â Â ($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 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â ($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
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.
