2 15 marks The fodowing data were taken from the records of

2. (15 marks) The fodowing data were taken from the records of nderson Manufacturing Company for the ear ended September 30, 2017 Raw Materials Imventory (20/1/10) Raw Mateñials inventory 19/30/17) Finished Goods Inventory 110/1/16) Finished Goods Inventory (9/30/17 Work in Process inventory (10/1/16) Work in Process Inventory (9/30y) 22,800 67,800 184,600 Indirect Labour 1B,100 32,000 Factory Machinery Depreciationn Factory Utilities Office Utilities Expense 17200 6,800 496,000 3,700 Sales Discounts Plant Manager\'s Salary Factory Property Taxes Factory Repairs Raw Materials Purchases 8,000 16,000 Instructions (a) Prepare a cost of goods manufactured schedule in good form. (Assume all raw materials used were direct materials.) (10 marks) (b) Prepare an income statement through gross profit. (5 marks)

Solution

(a).

(b).

Randerson Manufacturing Company
Cost of Goods Manufactured Schedule
For the Year Ended September 2017
Beginning raw materials inventory $	24000
Add: Raw material purchases	58400
Raw materials available for use	82400
Less: Ending raw materials	22800
Direct materials used		59600
Direct labor		184600
Manufacturing overhead
Indirect labor	18100
Factory insurance	8700
Factory machinery depreciation	17200
Factory utilities	12900
Plant manager\'s salary	61000
Factory property taxes	8000
Factory repairs	1200
Total manufacturing overheads		127100
Total current manufacturing costs		371300
Add: Beginning work in process		8000
Total cost of work in process		379300
Less: Ending work in process		9500
Cost of goods manufactured $		369800