Assessment 1 Part 1: Summary of Cost of Goods Manufactured and Cost of Goods Sold
Using the information on Central Manufacturing Company provided below, prepare a statement of cost of goods manufactured and a cost of good sold section of an income statement.
Cental Manufacturing Company Statement for January
Sales	125,000
Materials Inventory, January 1	35,000
Work-in-process Inventory, January 1	31,000
Finished Goods Inventory, January 1	32,000
Materials Purchased, January	44,000
Direct Labor Cost	29,000
Factory Overhead (including $1,000 indirect materials and $3,000 of indirect labor costs)	12,000
Selling and Administrative Expenses	10,000
Inventories January 31:
Materials	36,000
Work-in-process	39,000
Finished Goods	37,000
Step 1: Complete a statement of cost of goods manufactured
Inventory, January 1
Purchases
Total cost of available materials
Less inventory, January 31
Cost of materials used
Less indirect materials used
Cost of direct materials used in production
Direct labor
Factory Overhead
Indirect materials
Indirect labor
Other
Total factory overhead
Total Manufacturing Cost
Add work in process inventory, January 1
Less work in process inventory, January 31
Cost of goods manufactured
Step 2: Complete cost of goods sold section of an income statement.
Finished goods inventory, January 1
Add cost of goods manufactured
Goods available for sale
Less finished goods inventory, January 31
Cost of goods sold