F#11

Justine

Industries is calculating its Cost of Goods Manufactured at year-end. The company's accounting records show the following: The Raw Materials Inventory account had a beginning balance of

$17,000

and an ending balance of

$12,000.

During the year, the company purchased

$55,000

of direct materials. Direct labor for the year totaled

$121,000,

while manufacturing overhead amounted to

$151,000.

The Work in Process Inventory account had a beginning balance of

$22,000

and an ending balance of

$21,000.

Assume that Raw Materials Inventory contains only direct materials. Compute the Cost of Goods Manufactured for the year.

(Hint:

The first step is to calculate the direct materials used during the year.)

Start by calculating the direct materials used during the year.

Justine Industries
Calculation of Direct Materials Used
For Current Year
Plus:
Less:
Direct materials used

Compute the Cost of Goods Manufactured for the year.

Justine Industries
Calculation of Cost of Goods Manufactured
For Current Year
Plus:	Manufacturing costs incurred
Less:
Cost of goods manufactured