Chan$\text{'}$s manufacturing costing system uses a$$ three$-$part classification of direct$$ materials, direct manufacturing$$ labor, and manufacturing overhead costs. The following items$($in millions$)$ pertain to Chan $$Corporation:

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Requirement

Prepare an income statement and a supporting schedule of cost of goods manufactured.

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Part $1$

Begin by preparing the supporting schedule of cost of goods manufactured$($in millions$).$ Start with the direct materials and direct labor$$ costs, then indirect manufacturing$$ costs, and complete the schedule by calculating cost of goods manufactured.

Chan Corporation

Schedule of Cost of Goods Manufactured

For the Year Ended December $31,2020($in millions$)$

Direct material costs:

Cost of goods manufactured

$10$

Indirect manufacturing labor costs

$24$

Plant supplies used

$3$

Plant utilities

$9$

Direct materials used

Direct labor manufacturing costs