Homework SoursePROBLEM III From the information given prepare a statement o
PROBLEM III
From the information given, prepare a statement of cost of goods manufactured.
During August, Radio Company’s purchases of direct materials totaled $139,000: direct labor for the month was 3,400 hours at $8.75 per hour, Radio also incurred the following overhead costs: utilities $5,870, supervision $16,600; indirect material, $6,750; depreciation $6,200; insurance $1,830; miscellaneous $1,100
Beginning inventory accounts were as follows: Material Inventory $48,600; Work in Process Inventory $54,250; and Finished Goods Inventory $38,500. Ending inventory accounts were as follows: Material Inventory $50,100; Work In Progress Inventory $48,400; and Finished Goods Inventory $37,450.
PROBLEM III
From the information given, prepare a statement of cost of goods manufactured.
During August, Radio Company’s purchases of direct materials totaled $139,000: direct labor for the month was 3,400 hours at $8.75 per hour, Radio also incurred the following overhead costs: utilities $5,870, supervision $16,600; indirect material, $6,750; depreciation $6,200; insurance $1,830; miscellaneous $1,100
Beginning inventory accounts were as follows: Material Inventory $48,600; Work in Process Inventory $54,250; and Finished Goods Inventory $38,500. Ending inventory accounts were as follows: Material Inventory $50,100; Work In Progress Inventory $48,400; and Finished Goods Inventory $37,450.
PROBLEM III
From the information given, prepare a statement of cost of goods manufactured.
During August, Radio Company’s purchases of direct materials totaled $139,000: direct labor for the month was 3,400 hours at $8.75 per hour, Radio also incurred the following overhead costs: utilities $5,870, supervision $16,600; indirect material, $6,750; depreciation $6,200; insurance $1,830; miscellaneous $1,100
Beginning inventory accounts were as follows: Material Inventory $48,600; Work in Process Inventory $54,250; and Finished Goods Inventory $38,500. Ending inventory accounts were as follows: Material Inventory $50,100; Work In Progress Inventory $48,400; and Finished Goods Inventory $37,450.
Solution
Schedule of Cost of Goods manufactured: Beginning WIP 54250 Current cost of Manufacturing: Material consumed: Beginning Inventory 48600 Add: Purchase 139000 Cost of Material available 187600 Less: Ending Inventory 50100 Material consumed: 137500 Direct Labour 29750 Overheads cost incurred: Utilities 5870 Supervision 16600 Indirect Material 6750 Depreciation 6200 Insurance 1830 Mmisc expense 1100 Total OH incurred 38350 Total cost of manufacturing added during period 205600 Total cost of goods manufacturing 259850 Less: Ending invntory of WIP 48400 Cost of Goods manufactured 211450
