Consider the following account balances (in thousands) for the Neal Company:

Requirements

1. Prepare a schedule for the cost of goods manufactured for

2020.

2. Revenues for

2020

were

$260

million. Prepare the income statement for

2020.

Requirement 1. Prepare a schedule for the cost of goods manufactured for

2020.

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

Neal Company
Schedule of Cost of Goods Manufactured
For the Year Ended December 31, 2020 (in thousands)
Direct materials:
Direct materials used
Direct manufacturing labor

Data Table

Neal Company	Beginning of 2020	End of 2020
Direct materials inventory	21,000	29,000
Work-in-process inventory	27,000	24,000
Finished-goods inventory	17,000	28,000
Purchases of direct materials		78,000
Direct manufacturing labor		20,000
Indirect manufacturing labor		18,000
Plant insurance		7,000
Depreciationplant, building, and equipment		14,000
Repairs and maintenanceplant		5,000
Marketing, distribution, and customer-service costs		111,000
General and administrative costs		32,000