Inventories May 1 May 31
Materials $210,000 $184,800
Work in process 142,800 159,600
Finished goods 109,200 126,000
Direct labor $378,000
Materials purchased during May 403,200
Factory overhead incurred during May:
Indirect labor 40,320
Machinery depreciation 24,000
Heat, light, and power 8,400
Supplies 6,720
Property taxes 5,880
Miscellaneous costs 10,920
a. Prepare a cost of goods manufactured statement for May 2014.
b. Determine the cost of goods sold for May 2014.
Answer:
a.
TIWANA MANUFACTURING COMPANY
Statement of Cost of Goods Manufactured
For the Month Ended May 31, 2014
Work in process inventory, May 1, 2014 $ 142,800
Direct materials:
Materials inventory, May 1, 2014 $210,000
Purchases 403,200
Cost of materials available for use $613,200
Less materials inventory, May 31, 2014 184,800
Cost of direct materials used in
production $428,400
Direct labor 378,000
Factory overhead:
Indirect labor $ 40,320
Machinery depreciation 24,000
Heat, light, and power 8,400
Supplies 6,720
Property taxes 5,880
Miscellaneous cost 10,920
Total factory overhead 96,240
Total manufacturing costs incurred during May 902,640
Total manufacturing costs $1,045,440
Less work in process inventory, May 31, 2014 159,600
Cost of goods manufactured $ 885,840
b. Finished goods inventory, May 1, 2014………………………………………… $109,200
Cost of goods manufactured……………………………………………………… 885,840
Cost of finished goods available for sale………………………………………… $995,040
Less finished goods inventory, May 31, 2014………………………………… 126,000
Cost of goods sold………………………………………………………………… $869,040