BEX.02.02

Cost of Goods Manufactured Bob's Bistro produces party-sized hoagie sandwiches. For next year, Bob's Bistro predicts that 50,000 units will be produced with the following total costs: Direct materials ? Direct labor $100,000 $ Variable overhead 60,000 Fixed overhead 260,000 Next year, Bob's Bistro expects to purchase $195,500 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Direct Materials Work-in-Process - Inventory Inventory Beginning $9,500 $4,500 Ending 5,000 2,500 Required: 1. Prepare a statement of cost of goods manufactured in good form. Bob's Bistro Statement of Cost of Goods Manufactured For the Coming Year Direct materials Beginning inventory 9,500 Add: Purchases 195,500 $ 205,000 Materials available Less: Ending inventory 5,000 Direct materials used in production 200,000 Direct labor 100,000 Manufacturing (Factory) overhead 300,000 X 620,000 Total manufacturing costs added Add: Beginning work in process : Less: Ending work in process 2,500 Cost of goods manufactured 622,000