The

Neal

Corporation has the following account balances (in millions):

Requirement

Prepare an income statement and a supporting schedule of cost of goods manufactured for the year ended December 31,

2020.

Begin by preparing the schedule of cost of goods manufactured (in millions). Start with the direct materials and labor costs, then indirect manufacturing costs, and finally complete the schedule by calculating the cost of goods manufactured.

Neal Corporation
Schedule of Cost of Goods Manufactured
For the Year Ended December 31, 2020 (in millions)
Direct materials costs:
Direct materials used
Direct manufacturing labor costs

Data Table

For Specific Date
Direct materials inventory, January 1, 2020	$18
Work-in-process inventory, January 1, 2020	7
Finished goods inventory, January 1, 2020	72
Direct materials inventory, December 31, 2020	25
Work-in-process inventory, December 31, 2020	5
Finished goods inventory, December 31, 2020	59

For Year 2020
Purchases of direct materials	$320
Direct manufacturing labor	105
Depreciationplant and equipment	85
Plant supervisory salaries	5
Miscellaneous plant overhead	40
Revenues	965
Marketing, distribution, and customer-service costs	245
Plant supplies used	7
Plant utilities	30
Indirect manufacturing labor	66