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Concept Introduction: Cost of goods
Cost of manufactured goods represents total cost pertaining to finished goods produced in the accounting period. The manufacture first uses the raw material and with the help of direct labor and manufacturing
To Prepare:
To prepare schedule of cost of goods manufactured.
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Answer to Problem 13E
Schedule of cost of goods manufactured | ||
Particulars | Amount ($) | Amount ($) |
Raw materials- | | |
Raw materials inventory, Beginning | 37,000 | |
Purchase of raw material | 175,600 | |
Rw material available for use | 212,600 | |
Less: Raw material inventory, Ending | (42,700) | |
Raw material used | | 169,900 |
Direct labor | | 225,000 |
Manufacturing overhead- | | |
Factory supplies used | 17,840 | |
Indirect labor | 47,000 | |
Repairs- Factory equipment | 5,250 | |
Rent cost of factory building | 57,000 | |
Total manufacturing overhead | | 127,090 |
Total manufacturing costs | | 521,990 |
Add: Work in process inventory, Beginning | | 53,900 |
Total cost of work in process | | 575,890 |
Less: Work in process inventory, Ending | | 41,500 |
Cost of goods manufactured | 534,390 |
Explanation of Solution
Cost of goods manufactured is calculated as follows-
Conclusion:
Thus, Cost of goods manufactured calculated is $534,390.
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Connect Access Card For Fundamental Accounting Principles
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