Q# 2 ( 05 marks)

The ASF Corporation manufactures one product and accounts for costs by a job orders cost system You have obtained the following information for the year ended December 31 2010 from the Corporations books and records

Total manufacturing cost added during 2010 was 1,000,000

Cost of goods manufactured was 970,000

Material is 25% of cost of goods manufactured (applied factory overhead for the year 40% of the total manufacturing cost)

Beginning work in process inventory January 1 was 50% of ending work-in process inventory December 31

Required

1. Prepare a formal statement of cost good manufactured