Statement of Cost of Goods Manufactured for a Manufacturing Company

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

Inventories	January 1		January 31
Materials	$171,500		$152,640
Work in process	116,620		103,800
Finished goods	89,180		103,800

Direct labor		$308,700
Materials purchased during January		329,280
Factory overhead incurred during January:
	Indirect labor	32,930
	Machinery depreciation	19,890
	Heat, light, and power	6,860
	Supplies	5,490
	Property taxes	4,800
	Miscellaneous costs	8,920

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

Sandusky 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	$
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 overhead
Total manufacturing costs incurred during January
Total manufacturing costs			$
Work in process inventory, January 31
Cost of goods manufactured			$

Feedback

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. $

Feedback

b. Add the cost of goods manufactured from (a) to the beginning finished goods. Subtract the ending finished goods.

Feedback

Partially correct