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Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

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BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Statement of cost of goods manufactured for a manufacturing company

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 Factory overhead incurred during January: 1,375,000
Indirect labor 115,000
Machinery depreciation 90,000
Heat, light, and power 55,000
Supplies 13,500
Property taxes 10,000
Miscellaneous costs 33,100
  1. a. Prepare a cost of goods manufactured statement for January.
  2. b. Determine the cost of goods sold for January.

a)

To determine

Cost of goods manufactured:

Cost of goods manufactured refers to the costs incurred for manufacturing the goods during the period. A statement of cost of goods manufactured is prepared in order to determine the cost of goods manufactured, which in turn is used to determine the cost of goods sold, and prepare the income statement.

To prepare: The cost of goods manufactured statement of Company D for the month of January.

Explanation

Prepare the cost of goods manufactured statement for January.

Company D
Statement of Cost of Goods Manufactured
For the month ended January 31
Particulars $ $ $
Work in process inventory, January 1     (1) $ 334,600
Direct materials:
Materials inventory, January 1 $ 180,000
Purchases 1,375,000
Cost of materials available for use $1,555,000
Less: Materials inventory, January 31 145,500
Cost of direct materials used $1,409,500
Direct labor 2,260,000
Facto...

b)

To determine
The cost of goods sold for the month of January.

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