Homework SourseDuggar Consuling is going to manufacture billing software Du
Duggar Consuling is going to manufacture billing software. During its first month of manufacturing, Duggar incurred the following manufacturing costs:
Inventories:
Beginning
Ending
Raw Materials
$10,100
$8,900
Work-in-Process
0
22,000
Finished Goods
0
28,000
Other information:
Raw materials purchases
$13,000
Plant janitorial services
800
Sales salaries expense
5,000
Delivery expense
1,700
Sales revenue
1,100,000
Utilities for plant
17,000
Rent on plant
11,000
Customer service hotline costs
15,000
Direct labor
210,000
| Inventories: | Beginning | Ending | |
| Raw Materials | $10,100 | $8,900 | |
| Work-in-Process | 0 | 22,000 | |
| Finished Goods | 0 | 28,000 | |
| Other information: | |||
| Raw materials purchases | $13,000 | ||
| Plant janitorial services | 800 | ||
| Sales salaries expense | 5,000 | ||
| Delivery expense | 1,700 | ||
| Sales revenue | 1,100,000 | ||
| Utilities for plant | 17,000 | ||
| Rent on plant | 11,000 | ||
| Customer service hotline costs | 15,000 | ||
| Direct labor | 210,000 |
Solution
Cost of Goods Manufactured Schedule :-
| Particulars | Amount($) | Amount($) | Amount($) |
| Opening WIP | 0 | ||
| Direct Materials :- | |||
| Opening Raw Material | 10100 | ||
| Add : Purchases | 13000 | ||
| Total | 23100 | ||
| Less : Closing Raw Material | (8900) | ||
| Direct Material Use | 14200 | ||
| Direct Labor | 210000 | ||
| Manufacturing Overhead :- | |||
| Plant Janitorial services | 800 | ||
| Utilities for Plant | 17000 | ||
| Rent on Plant | 11000 | ||
| Total Manufacturing Overhead | 28800 | ||
| Total Manufacturing Cost | 253000 | ||
| Total Cost of WIP | 253000 | ||
| Less : Closing WIP | (22000) | ||
| Cost of Goods Manufactured | 231000 |
