Question
Requirement 1. Prepare a schedule for the cost of goods manufactured for 20172017. Begin by preparing the schedule of cost of goods manufactured (in thousands).
Requirement 1. Prepare a schedule for the cost of goods manufactured for
20172017.
Begin by preparing the schedule of cost of goods manufactured (in thousands). Start with the direct materials and labor costs, then indirect manufacturing costs, and complete the schedule by calculating cost of goods manufactured.
| Neal Company | ||||
| Schedule of Cost of Goods Manufactured | ||||
| For the Year Ended December 31, 2017 (in thousands) | ||||
| Direct materials: |
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| Beginning inventory, Jan. 1, 2017 |
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| Purchases of direct materials |
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| Cost of direct materials available for use |
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| Ending inventory, Dec. 31, 2017 |
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| Direct materials used |
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| Direct manufacturing labor |
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| Beginning of | End of |
| Neal Company | 2017 | 2017 |
| Direct materials inventory | 22,000 | 29,000 |
| Work-in-process inventory | 21,000 | 20,000 |
| Finished-goods inventory | 10,000 | 27,000 |
| Purchases of direct materials |
| 76,000 |
| Direct manufacturing labor | 25,000 | |
| Indirect manufacturing labor | 15,000 | |
| Plant insurance | 7,000 | |
| Depreciationplant, building, and equipment | 12,000 | |
| Repairs and maintenanceplant | 3,000 | |
| Marketing, distribution, and customer-service costs | 95,000 | |
| General and administrative costs | 32,000 |
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