# 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 a. Prepare a cost of goods manufactured statement for January. b. Determine the cost of goods sold for January.

### Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

### Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

#### Solutions

Chapter
Section
Chapter 18, Problem 18.16EX
Textbook Problem

## Statement of cost of goods manufactured for a manufacturing companyCost 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 a. Prepare a cost of goods manufactured statement for January. b. Determine the cost of goods sold for January.

Expert Solution

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 of Solution

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 1Â Â Â  Â (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...
Expert Solution

b)

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

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