compute the cost of goods manufactured schedule using t-accounts, i.e., direct materials, work in progress, and finished goods.
for a period of time. The cost of goods manufactured amount is transferred to the finished goods Inventory account during the period and is used in calculating cost of goods sold on the income statement. The cost of goods manufactured schedule reports the total manufacturing costs for the period that were added to work-in-process, and adjusts these costs for the change in the work-in- process inventory account to calculate the cost of goods manufactured. Red Car, Inc. Cost of Goods Manufactured Schedule For the Year Ended December 31, 20xO Direct materials used Beginning raw materials inventory $ 6,200 Add: Cost of raw materials purchased 49,400 Total raw materials available 55,600 Less: Ending raw materials inventory (5,800) Total raw materials used $ 49,800 Direct labor 125,600 Manufacturing overhead Indirect materials 4,100 Indirect labor 43,700 Depreciation-factory building 9,500 Depreciation--factory equipment 5,400 Insurance-factory 12,000 Property taxes---factory 4,500 Total manufacturing overhead 79,200 Total manufacturing costs 254,600 Add: Beginning work-in-process inventory 10,20 264,800 Less: Ending work-in-process inventory (9,800) Cost of goods manufactured $255,000 KLADATELNICOM Demencoreren Ende December 2, ZUXO Sales $427,000 Cost of goods sold 256,900 170,100 Beginning finished goods inventory $ 14,500 Cost of goods manufactured 255,000 Total goods available for sale 269,500 Ending finished goods inventory (12.600) Cost of goods sold Gross profit Operating expenses Selling expenses Sales salaries $65,300 Depreciation-sales equipment 21,000 Total selling expenses 86,300 Administrative expenses Office salaries 135,000 Depreciation--office equipment 12,000 Insurance expense 9,000 Office supplies expense 2.400 Total administrative expenses 58,400 Total operating expenses Income from operations Interest revenue 104.700 Income before taxes 25,400 5.100 30, 500 10.675 529 825 Income taxes Net income Inventory account during the period and is used in calculating cost of goods sold on the income statement. The cost of goods manufactured schedule reports the total manufacturing costs for the period that were added to work-in-process, and adjusts these costs for the change in the work-in- process inventory account to calculate the cost of goods manufactured. Red Car, Inc. Cost of Goods Manufactured Schedule For the Year Ended December 31, 20xO Direct materials used Beginning raw materials inventory $ 6,200 Add: Cost of raw materials purchased 49,400 Total raw materials available 55,600 Less: Ending raw materials inventory (5,800) Total raw materials used $ 49,800 Direct labor 125,600 Manufacturing overhead Indirect materials 4,100 Indirect labor 43,700 Depreciation--factory building 9,500 Depreciation factory equipment 5,400 Insurance-factory 12,000 Income St Property taxes--factory 4.500 Total manufacturing overhead 42 79,200 Rev Total manufacturing costs 254,600 COGS 25 Add: Beginning work-in-process inventory 10,200 264,800 Less: Ending work in process inventory (9.800) Cost of goods manufactured $255,000
