Answer:
Johnstone Manufacturing Company
Statement of Cost of Goods Manufactured
Raw Materials $298,040
Direct labor $319,050
Factory overhead incurred :
Indirect labor $34,030
Machinery depreciation $20,560
Heat, light, and power $7,090
Supplies $5,670
Property taxes $4,960
Miscellaneous costs $9,220
Add Opening Work in process Inventory $116,990
Less Closing Work in process Inventory (105,290)
Cost of Goods Manufactured $710,320
Explanation:
Cost of Goods Manufactured Statement, is a summary of costs incurred to manufacture products.
<em>Calculation of Raw Materials used in Production.</em>
Raw Materials T - Account
Debit :
Opening Balance $177,250
Purchases $340,320
Totals $457,570
Credit :
Closing Balance $159,530
Work In Process (Balancing figure) $298,040
Totals $457,570
