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Cost of Goods Manufactured 1,000,000

The document summarizes the calculation of cost of goods manufactured and sold for a company over a year. It tracks raw materials from beginning inventory through production and transfers to work in process. It also tracks direct labor and factory overhead costs added at each stage of production. The calculations show that the beginning work in process was increased by $595,000 of direct materials, $405,000 of direct labor and $200,000 of factory overhead costs, for a total manufacturing cost of $1,200,000. After deducting ending work in process, the cost of goods manufactured was $1,000,000. Adding this to the beginning finished goods, and deducting ending finished goods, the cost of goods sold was calculated as

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59 views7 pages

Cost of Goods Manufactured 1,000,000

The document summarizes the calculation of cost of goods manufactured and sold for a company over a year. It tracks raw materials from beginning inventory through production and transfers to work in process. It also tracks direct labor and factory overhead costs added at each stage of production. The calculations show that the beginning work in process was increased by $595,000 of direct materials, $405,000 of direct labor and $200,000 of factory overhead costs, for a total manufacturing cost of $1,200,000. After deducting ending work in process, the cost of goods manufactured was $1,000,000. Adding this to the beginning finished goods, and deducting ending finished goods, the cost of goods sold was calculated as

Uploaded by

ahmed_one
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLS, PDF, TXT or read online on Scribd
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Beginning Raw Materials Inventory, Jan 1 135,000

Add: Purchases 620,000


Raw Material Available for use 755,000
Less: Ending Raw Material Dec 31 (160,000)
Raw Material Trasnfered to WIP 595,000

Beginning WIP, Jan 1 425,00


Add: WIP during the period:
Direct Material (From Raw Material Sch) 595,000
Direct Labor 405,000
Facotry Overheads:
Indirect Materials 15,000
Indirect Labor 13,000
Factory Utilities 80,000
Factory Depreciation 70,000
Factory Insurance, Maintanance and taxes 22,000 200,000 1,200,00
Total Manufacturing Cost 1,625,00
Less: Ending WIP Dec 31 625,00
Cost of goods Manufactured 1,000,00

Direct Material:
Beginning Raw Materials Inventory, Jan 1 135,000
Add: Purchases 620,000
Raw Material Available for use 755,000
Less: Ending Raw Material Dec 31 160,000
Raw Material Trasnfered to WIP 595,000
Direct Labor 405,000
Factory Overhead:
Indirect Materials 15,000
Indirect Labor 13,000
Factory Utilities 80,000
Factory Depreciation 70,000
Factory Insurance, Maintanance and taxes 22,000 200,000
Total Manufacturing Cost 1,200,000
Beginning WIP Jan 1 425,000
1,625,000
Less: Ending WIP Dec 31 625,000
Cost of Goods Manufactured 1,000,000
425,000

595,000
405,000

,000
,000
,000
,000
,000 200,000 1,200,000
1,625,000
625,000
1,000,000

135,000
620,000
755,000
160,000
595,000
405,000

15,000
13,000
80,000
70,000
22,000 200,000
1,200,000
425,000
1,625,000
625,000
1,000,000
Beginning WIP, Jan 1
Add: WIP during the period:
Direct Material (From Raw Material Sch) 595,000
Direct Labor 405,000
Facotry Overheads:
Indirect Materials 15,000
Indirect Labor 13,000
Factory Utilities 80,000
Factory Depreciation 70,000
Factory Insurance, Maintanance and taxes 22,000 200,000
Total Manufacturing Cost
Less: Ending WIP Dec 31
Cost of goods Manufactured
425,000

1,200,000
1,625,000
625,000
1,000,000
Direct Material:
Beginning Raw Materials Inventory, Jan 1 135,000
Add: Purchases 620,000
Raw Material Available for use 755,000
Less: Ending Raw Material Dec 31 160,000
Raw Material Trasnfered to WIP
Direct Labor
Factory Overhead:
Indirect Materials 15,000
Indirect Labor 13,000
Factory Utilities 80,000
Factory Depreciation 70,000
Factory Insurance, Maintanance and taxes 22,000
Total Manufacturing Cost
Beginning WIP Jan 1

Less: Ending WIP Dec 31


Cost of Goods Manufactured
595,000
405,000

200,000
1,200,000
425,000
1,625,000
625,000
1,000,000
Beginning Finished Goods Inventory, Jan 1 250,000
Add: Cost of Goods Manufcatured 1,000,000
Goods Available for Sale 1,250,000
Less: Ending Finished Goods Dec 31 190,000
Cost of Goods Sold 1,060,000

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