Hello, please help me figure out what category comes after Depreciation in the Schedule of Cost of Goods Manufactured attached?
I've tried all of the below
- Depreciation
- Direct labor
- Direct-material costs
- Indirect labor
- Indirect material
- Raw-material inventory, 1/1
- Raw-material purchases
- Utilities
- Work-in-process inventory
FiberCom, Inc., a manufacturer of fiber optic communications equipment, uses a job-order costing system. Since the production process is heavily automated, manufacturing overhead is applied on the basis of machine hours using a predetermined overhead rate. The current annual rate of $15 per machine hour is based on budgeted manufacturing overhead costs of $1,200,000 and a budgeted activity level of 80,000 machine hours (the company's estimated practical capacity). Operations for the year have been completed, and all of the accounting entries have been made for the year except the application of manufacturing overhead to the jobs worked on during December, the transfer of costs from Work in Process to Finished Goods for the jobs completed in December, and the transfer of costs from Finished Goods to Cost of Goods Sold for the jobs that have been sold during December. Summarized data as of November 30 and for the month of December are presented in the following table. Jobs T11-007, N11-013, and N11-015 were completed during December. All completed jobs except Job N11-013 had been turned over to customers by the close of business on December 31. Work-in-Process December Activity Balance November 30 $ 87,000 Direct Direct Labor $ 4,500 Machine Hours Job No. Material 1,500 4,000 25,600 37,900 26,000 T11-007 300 N11-013 55,000 12,000 26,700 20,000 1,000 1,400 2,500 N11-015 -0- D12-002 -0- D12-003 -0- 16,800 800 $142,000 $95,000 $80,000 6,000 Activity through November 30 December Operating Activity Actual manufacturing overhead incurred: Indirect material Indirect labor Utilities Activity s 125,000 $ 9,000 345,000 245,000 385,000 $1,100,000 30,000 22,000 35,000 96,000 Depreciation Total overhead Other data: Raw-material purchases Direct-labor costs Machine hours 965,000 845,000 73,000 98,000 80,000 6,000 Account Balances at Beginning of Year Raw-material inventory Work-in-process inventory Finished-goods inventory January 1 105,000 60,000 125,000 Raw-material purchases and raw-material inventory consist of both direct and indirect materials. The balance of the raw- material inventory account as of December 31 of the year just completed is $85,000. 6. Prepare a Schedule of Cost of Goods Manufactured for FiberCom, Inc. for the year just completed. (Hint: In computing the cost of direct material used, remember that FiberCom includes both direct and indirect material in its Raw-Material Inventory account.) Answer is not complete. FIBERCOM, INC Schedule of Cost of Goods Manufactured For the Year Ended December 31 Direct material: $ 105,000 Raw-material inventory, 1/1 Raw-material purchases 1,063,000 $ 1,168,000 Raw material available for use $ 134,000 Less: Indirect material used Less: Raw-material inventory 12/31 S 219,000 85,000 $ 949,000 Raw material used Direct labor 925,000 Manufacturing overhead: $ 134,000 Indirect material Indirect labor 375,000 Utilities 267,000 Depreciation 420,000 Direct-material costs 0 Total actual manufacturing overhead 1,196,000 Less: Underapplied overhead $ 1,196,000 Overhead applied to work in process $ 3,059,000 Total manufacturing costs Add: Work-in-process inventory, 1/1 60,000 Subtotal $ 3,119,000 Less: Work-in-process inventory, 12/31 150,200 $ 2,968,800 Cost of goods manufactured
