Required information The following selected account balances

Required information

The following selected account balances are provided for Delray Mfg.

Prepare its schedule of cost of goods manufactured for the year ended December 31, 2017.

DELRAY MFG.Schedule of Cost of Goods ManufacturedFor Year Ended December 31, 2017Direct materials:Raw materials available for useDirect materials usedFactory overhead:Total factory overhead costsTotal manufacturing costsTotal cost of work in processCost of goods manufactured

Sales	$	1,250,000
Raw materials inventory, Dec. 31, 2016		37,000
Work in process inventory, Dec. 31, 2016		53,900
Finished goods inventory, Dec. 31, 2016		62,750
Raw materials purchases		175,600
Direct labor		225,000
Factory computer supplies used		17,840
Indirect labor		47,000
Repairs—Factory equipment		5,250
Rent cost of factory building		57,000
Advertising expense		94,000
General and administrative expenses		129,300
Raw materials inventory, Dec. 31, 2017		42,700
Work in process inventory, Dec. 31, 2017		41,500
Finished goods inventory, Dec. 31, 2017		67,300

Solution

DELRAY MANUFACTURING Schedule of cost of goods manufacture For the year ended DECEMBER 31,2017 PARTICULARS DEBIT CREDIT Direct Materials:- Beginning raw material inventory,january 1 $37,000 Raw materials available for use $175,600 Direct material used $42,700 $169,900 Direct labour $225,000 Factory overghead:- Factory computer supplies used $17,840 Indirect labour $47,000 Repairs-factory equipment $5,250 Rent cost of factory building $57,000 Advertising expense $94,000 General and administrative expenses $129,300 Total factory overhead costs $350,390 Total manufacturing costs $745,290 Total cost of work in process (53900-41500) $12,400 Cost of goods manufactured $757,690