Statement of Cost of Goods Manufactured for a Manufacturing Company

Cost data for Disksan Manufacturing Company for the month ended January 31 are as follows:

Inventories	January 1		January 31
Materials	$161,500		$145,350
Work in process	109,820		98,840
Finished goods	83,980		98,840

Direct labor		$290,700
Materials purchased during January		310,080
Factory overhead incurred during January:
	Indirect labor	31,010
	Machinery depreciation	18,730
	Heat, light, and power	6,460
	Supplies	5,170
	Property taxes	4,520
	Miscellaneous costs	8,400

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

Disksan Manufacturing Company Statement of Cost of Goods Manufactured For the Month Ended January 31

Work in process inventory, January 1			$______
Direct materials:
Materials inventory, January 1	$____
Purchases
Cost of materials available for use	$_____
Less materials inventory, January 31
Cost of direct materials used		$
Direct labor
Factory overhead:
Indirect labor	$____
Machinery depreciation
Heat, light, and power
Supplies
Property taxes
Miscellaneous costs
Total factory overhead		____
Total manufacturing costs incurred during January			_____
Total manufacturing costs			$____
Less 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 the cost of goods sold for January.

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