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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

Relax

Respuesta :

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

Answer:

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

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.