Williams Company is considering the purchase of a new automated assembly line for its factory. The purchase would result in several changes in Williams cost structure. Both direct labor and indirect labor would decrease by 40%. Factory insurance would increase to $7,200, machinery depreciation would double, machinery repairs would decrease to $500, utilities would decrease to $2,700 and miscellaneous factory costs would increase to $1,970. Materials usage would remain at current levels.

An analysis of the accounts of Williams Company reveals the following manufacturing cost data for the month ended September 30, 2020. Inventories Raw materials Work in process Finished goods Beginning $11,500 7,800 9,100 Ending $11,100 4,800 11,000 Costs incurred: raw materials purchases $65,300, direct labor $55,100, manufacturing overhead $25,860. The specific overhead costs were: indirect labor $7,000, factory insurance $5,500, machinery depreciation $5,600, machinery repairs $2,500, factory utilities $3,400, miscellaneous factory costs $1,860. Assume that all raw materials used were direct materials. Williams Company is considering the purchase of a new automated assembly line for its factory. The purchase would result in several changes in Williams' cost structure. Both direct labor and indirect labor would decrease by 40%. Factory insurance would increase to $7,200, machinery depreciation would double, machinery repairs would decrease to $500, utilities would decrease to $2,700 and miscellaneous factory costs would increase to $1,970. Materials usage would remain at current levels. Analyze the new purchase by preparing a cost of goods manufactured schedule for September 30, 2020 using the new data. Williams Co. Cost of Goods Manufacturing Schedule For the Month Ended September 30, 2020 Work in Process 9/1/20 Direct Materials Raw Materials Inventory 9/1/20 Add Raw Materials Purchases Total Raw Materials Available for Use Less Raw Materials Inventory 9/30/20 Direct Materials Used Direct Labor Manufacturing Overhead Manufacturing Overhead Indirect Labor Factory Utilities Machine Repairs Miscellaneous Factory Costs