Alexandria Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at thebeginning and end of 20x1.Inventory ClassificationRaw materialWork in processJanuary 1, 20x1$ 60,000December 31, 20x1$ 70,000115,000120,000Finished goods150,000165,000During 20x1, the company purchased $250,000 of raw material and spent $400,000 on direct labor. Manufacturingoverhead costs were as follows:Indirect material$ 10,000Indirect labor25,000Depreciation on plant and equipment100,000Utilities25,000Other30,000Sales revenue was $1,105,000 for the year. Selling and administrative expenses for the year amounted to $110,000. Thefirm's tax rate is 40 percent.Required:1. Prepare a schedule of cost of goods manufactured.O Answer is not complete.ALEXANDRIA ALUMINUM COMPANYSchedule of Cost of Goods ManufacturedFor the Year Ended December 31, 20x1Direct material:Raw-material inventory, January 160,000 OAdd: Purchases of raw material250,000 ORaw material available for use310,000 OLess: Raw-material inventory, December 31(70,000) ORaw material used$240,000Direct labor400,000 VManufacturing overhead:Indirect material10,000Indirect labor25,000 O100,000 O25,000 O30,000 ODepreciation on plant and equipmentUtilitiesOtherMissingMissingTotal manufacturing overhead190,000$Total manufacturing costsMissing830,000SubtotalLess: Work-in-process inventory, December 31(115,000) OCost of goods manufactured$ 835,000 OO0000O0000O

Cost of goods manufactured is the amount representing the cost that has been incurred on the…

Alexandria Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20x1. January 1, 20x1 $ 60,000 120,000 150,000 Inventory Classification Raw material December 31, 20x1 $ 70,000 Work in process Finished goods 115,000 165,000 During 20x1, the company purchased $250,000 of raw material and spent $400,000 on direct labor. Manufacturing overhead costs were as follows: $ 10,000 25,000 100,000 25,000 30,000 Indirect material Indirect labor Depreciation on plant and equipment Utilities Other Sales revenue was $1,105,000 for the year. Selling and administrative expenses for the year amounted to $110,000. The firm's tax rate is 40 percent. quired: Prepare a schedule of cost of goods manufactured.

Alexandria Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20x1. January 1, 20x1 $ 60,000 120,000 150,000 Inventory Classification Raw material December 31, 20x1 $ 70,000 Work in process Finished goods 115,000 165,000 During 20x1, the company purchased $250,000 of raw material and spent $400,000 on direct labor. Manufacturing overhead costs were as follows: $ 10,000 25,000 100,000 25,000 30,000 Indirect material Indirect labor Depreciation on plant and equipment Utilities Other Sales revenue was $1,105,000 for the year. Selling and administrative expenses for the year amounted to $110,000. The firm's tax rate is 40 percent. quired: Prepare a schedule of cost of goods manufactured.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 14E: For each of the following independent situations, calculate the missing values: 1. The Belen plant...

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