Question

Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during the current year. Indirect labor amounted to $2,700 while indirect materials used totaled $1,600. Other operating costs pertaining to the factory included utilities of $3,100, maintenance of $4,500, supplies of $1,800, depreciation of $7,900, and property taxes of $2,600. There was no beginning or ending finished goods inventory, but work in process inventory began the year with a $5,500 balance and ended the year with a $7,500 balance. Prepare a statement of cost of goods manufactured. Allen Company Statement of Cost of Goods Manufactured For the Year Ended December 31 $ $ Factory overhead: $ Total manufacturing costs incurred Total manufacturing costs $ Cost of goods manufactured $

Answer 1

Answer:

Allen Company

Allen Company Statement of Cost of Goods Manufactured For the Year Ended December 31

Direct materials cost               $71,000

Direct labor cost                       37,000  $108,000

Factory overhead:

Indirect labor cost       $2,700

Indirect materials cost $1,600

Utilities                         $3,100

Maintenance              $4,500

Supplies                      $1,800

Depreciation              $7,900

Property taxes           $2,600                 $24,200

Total manufacturing costs incurred     $132,200

Beginning WIP                                          $5,500

Total manufacturing costs                   $132,200

less Ending WIP                                       $7,500

Cost of goods manufactured              $130,200

Explanation:

a) Data and Calculations:

Direct materials cost = $71,000

Direct labor cost = $37,000

Indirect labor cost = $2,700

Indirect materials cost = $1,600

Other factory expenses:

Utilities = $3,100

Maintenance = $4,500

Supplies = $1,800

Depreciation = $7,900

Property taxes = $2,600

Beginning WIP = $5,500

Ending WIP = $7,500