InventoriesJanuary 1January 31Materials$220,500$189,630Work in process147,740127,050Finished goods114,660128,950

Direct labor$396,900Materials purchased during January423,360Factory overhead incurred during January:Indirect labor42,340Machinery depreciation25,580Heat, light, and power8,820Supplies7,060Property taxes6,170Miscellaneous costs11,470

a. Prepare a cost of goods manufactured statement for January.

Sandusky Manufacturing CompanyStatement of Cost of Goods ManufacturedFor the Month Ended January 31Work in process inventory, January 1

$Direct materials:Materials inventory, January 1

$Purchases

Cost of materials available for use

$Materials inventory, January 31

Cost of direct materials used in production

$Direct labor

Factory overhead:Indirect labor

$Machinery depreciation

Heat, light, and power

Supplies

Property taxes

Miscellaneous costs

Total factory overheadTotal manufacturing costs incurred during JanuaryTotal manufacturing costs$Work in process inventory, January 31

Cost of goods manufactured$

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a. Add the beginning materials and purchases and subtract the ending materials. Add direct labor and factory overhead. This will give total manufacturing costs. Then, add the total manufacturing costs to the beginning work in process and subtract the ending work in process.

b.Determine thecost of goods soldfor January.

$