Messinger Manufacturing Company had the following account balances for the quart
ID: 2372917 • Letter: M
Question
Messinger Manufacturing Company had the following account balances for the quarter ending March 31, unless otherwise noted:
Work-in-process inventory (January 1) $ 140,400
Work-in-process inventory (March 31) 171,000
Finished goods inventory (January 1) 540,000
Finished goods inventory (March 31) 510,000
Direct materials used 378,000
Indirect materials used 84,000
Direct manufacturing labor 480,000
Indirect manufacturing labor 186,000
Property taxes on manufacturing plant building 28,800
Salespersons' company vehicle costs 12,000
Depreciation of manufacturing equipment 264,000
Depreciation of office equipment 123,600
Miscellaneous plant overhead 135,000
Plant utilities 92,400
General office expenses 305,400
Marketing distribution costs 30,000
REQUIRED:
a) Prepare a cost of goods manufactured schedule for the quarter.
b) Prepare a cost of goods sold schedule for the quarter.
Explanation / Answer
ANSWER
Prepare a cost of goods manufactured schedule for the quarter.
Direct materials used 378,000
Direct manufacturing labor 480,000
Manufacturing overhead
...Indirect materials used 84,000
...Indirect manufacturing labor 186,000
...Property taxes on manufacturing plant building 28,800
...Depreciation of manufacturing equipment 264,000
...Miscellaneous plant overhead 135,000
...Plant utilities 92,400
...Total mfg overhead $790,200
Total manufacturing costs $1,648,200
add Work-in-process inventory (January 1) $ 140,400
less Work-in-process inventory (March 31) $ 171,000
Cost of goods manufactured $1,617,600
b. Prepare a cost of goods sold schedule for the quarter.
Finished goods inventory (January 1) 540,000
add Cost of goods manufactured $1,617,600
less Finished goods inventory (March 31) 510,000
cost of goods sold $1,647,600