Statement of Cost of Goods Manufactured E4A During June Agro

Statement of Cost of Goods Manufactured E4A. During June, Agron, Inc., purchases of direct materials totaled S119,000; direct labor for the month was 3,400 hours at $10.00 per hour. Agron also incurred the follow- ing overhead costs: utilities, $5,870; supervision, $17,300; indirect materials, $6,750; depreciation, S6,200; insurance, $1,830; and miscellaneous, S1,100. Beginning inventory accounts were as follows: Materials Inventory, $48,600; Work in Process Inventory, $55,250; and Finished Goods Inventory, S38,500. Ending inventory accounts were as follows: Materials Inventory, $55,100; Work in Process Inventory, S48,400; and Finished Goods Inventory, $37,450. Prepare a statement of cost of goods manufactured.

Solution

Statement of Cost of Goods Manufactured For the Month of June Direct materials used: Materials inventory beginning 48600 Direct materials purchases 119000 Cost of direct materials available for use 167600 Less: Materials inventory ending 55100 Cost of direct materials used 112500 Direct labor 34000 Overhead: Utilities 5870 Supervision 17300 Indirect materials 6750 Depreciation 6200 Insurance 1830 Miscellaneous 1100 Total overhead 39050 Total manufacturing costs 185550 Add: Work in process beginning 55250 Total cost of work in process 240800 Less: Work in process ending 48400 Cost of goods manufactured 192400