Homework SourseStatement of Cost of Goods Manufactured for a Manufacturing
Statement of Cost of Goods Manufactured for a Manufacturing Company
Cost data for F. Mills Manufacturing Company for the month ended May 31, 2014, are as follows:
a. Prepare a cost of goods manufactured statement for May 2014.
b. Determine the cost of goods sold for May 2014.
| Inventories | May 1 | May 31 | ||
| Materials | $177,000 | $159,300 | ||
| Work in process | 116,820 | 105,140 | ||
| Finished goods | 93,810 | 106,730 |
Solution
a. Prepare a cost of goods manufactured statement for May 2014.
b. Determine the cost of goods sold for May 2014.
Cost of goods sold = Beginning finished goods+cost of goods manufactured-ending finished goods
= 93810+769230-106730
Cost of goods sold = 756310
| Beginning raw material inventory | 177000 | |
| Materials purchased | 339840 | |
| Less: Ending raw material inventory | (159300) | 357540 |
| Direct labour | 318600 | |
| Manufacturing overhead | ||
| Indirect labour | 33980 | |
| Machinery depreciation | 20530 | |
| Heat, light, and power | 7080 | |
| Supplies | 5660 | |
| Property taxes | 4960 | |
| Miscellaneous costs | 9200 | 81410 |
| Total manufacturing cost | 757550 | |
| Beginning work in process | 116820 | |
| Total work in process | 874370 | |
| Less: Ending work in process | (105140) | |
| Cost of goods manufactured | 769230 |
