Ch. 18 Q:7 Statement of Cost of Goods Manufactured for a Manufacturing Company C
ID: 2431046 • Letter: C
Question
Ch. 18 Q:7
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 Materials Work in process Finished goods January 1 January 31 $235,000 $199,750 131,840 133,830 155,100 119,850 Direct labor Materials purchased during January Factory overhead incurred during January: $423,000 451,200 Indirect labor Machinery depreciation Heat, light, and power Supplies Property taxes Miscellaneous costs 45,120 27,260 9,400 7,520 6,580 12,220Explanation / Answer
Ans. (A)
Disksan Manufacturing Company
Statement of Cost of Goods Manufactured
For the Month Ended January 31
Materials As on 1 Jan $235,000
Ans. (B) Cost of Goods Sold = Opning Finished Goods + Cost of Goods Manufactured - Closing Finished Goods
= $119,850 + $1,040,810 - $133,830 = $1,026,830
Materials As on 1 Jan $235,000
Add:- Material Purchased $451,200 Less:- Materials As on 31 Jan $199,750 Materials Used $486,450 Direct Labour $423,000 Factory Overhead Indirect Labour $45,120 Machinery Expenses $27,260 Heat, Light, and Power $9,400 Supplies $7,520 Property Taxes $6,580 Miscellaneous Costs $12,220 Total Factory Overhead $108,100 Total Manufacturing Cost $1017550 Add :- Work in Process As on 1 Jan $155,100 Less:- Work in Process As on 31 Jan $131,840 Cost of Goods Manufactured $1,040,810