QS 4-16:

Use the following information to compute the cost of direct materials used for the current year. Note: Assume all raw materials were used as direct materials.

MY QUESTION:

Refer to the data in Quick Study 14-16. Factory overhead of $39,000 consists of Indirect labor of $20,000, Depreciation expenseFactory of $15,000, and Factory utilities of $4,000.

1. Compute total manufacturing costs.

2. Prepare a schedule of cost of goods manufactured.

Beginning of Year $ 6,000 12,000 8,000 End of Year $7,000 9,000 5,000 Inventories Raw materials inventory Work in process inventory Finished goods inventory Activity during current year Raw materials purchased Direct labor Factory overhead $123,000 94,000 39,000