Messinger Manufacturing Company had the following account ba

Messinger Manufacturing Company had the following account balances for the quarter ending March 31, unless otherwise noted:

        Work-in-process inventory (January 1)                          $ 140,400

        Work-in-process inventory (March 31)                              171,000

        Finished goods inventory (January 1)                                540,000

        Finished goods inventory (March 31)                                510,000

        Direct materials used                                                               378,000

        Indirect materials used                                                              84,000

        Direct manufacturing labor                                                   480,000

        Indirect manufacturing labor                                                186,000

        Property taxes on manufacturing plant building             28,800

        Salespersons\' company vehicle costs                                    12,000

        Depreciation of manufacturing equipment                      264,000

        Depreciation of office equipment                                        123,600

        Miscellaneous plant overhead                                              135,000

        Plant utilities                                                                                 92,400

        General office expenses                                                           305,400

        Marketing distribution costs                                                    30,000

In an Excel spreadsheet, using the format in the pictures below, prepare the following using the information above:

1. Statement of cost of goods manufactured for the period ended March 31.

2. Statement of cost of goods sold for the period ended March 31 .

1 PANEL A: INCOME STATEMENT 2 3 4 5 Revenues 6 Cost of goods sold 7 Beginning finished goods inventory, January 1, 2017 8 Cost of goods manufactured (see Panel B) 9 Cost of goods available for sale 10 Ending finished goods inventory, December 31, 2017 Cellular Products Income Statement For the Year Ended December 31, 2017 (in thousands) $210,000 22,000 104,000 126,000 18,000 STEP 4 108,000 102,000 Cost of goods sold 12 Gross margin (or gross profit) 13 Operating (period) costs 14 R&D;, design, mktg., dist., and cust.-service cost 15 16 Operating income 17 18 PANEL B: COST OF GOODS MANUFACTURED 19 70,000 70,000 32,000 Total operating costs Cellular Products

Solution

Messinger Manufacturing Company Cost of Goods Manufactured Quarter Ending March 31 Direct materials used $378,000 Direct manufacturing labor 480,000 Manufacturing overhead costs: Indirect materials used 84,000 Indirect manufacturing labor 186,000 Miscellaneous plant overhead 135,000 Plant utilities 92,400 Property tax on manufacturing plant building 28,800 Depreciation - plant equipment 264,000 Total Manufacturing overhead costs 790,200 Manufacturing costs incuring during quarter 1,648,200 Beginning work-in-progress inventory, January 1 140,400 Total manufacturing costs to account for 1,788,600 Ending work-in-progress inventory, March 31 171,000 Cost of goods manufactured (to income statement) 1,617,600 Messinger Manufacturing Company Cost of Goods Sold Quarter Ending March 31 Cost of goods sold: Beginning finished goods inventory, January 1           540,000 Cost of goods manufactured (See COGM schedule)        1,617,600 Cost of goods available for sale        2,157,600 Ending finished goods inventory, March 31           510,000 Cost of goods sold        1,647,600