Question

Cepeda Corporation has the following cost records for June 2020.Indirect factory labor $5,150 Factory utilities $500 Direct materials used 22,360 Depreciation, factory equipment 1,620 Work in process, 6/1/20 3,480 Direct labor 42,170 Work in process, 6/30/20 4,620 Maintenance, factory equipment 2,000 Finished goods, 6/1/20 5,660 Indirect materials 2,600 Finished goods, 6/30/20 7,680 Factory manager’s salary 3,340Prepare cost of goods manufactured schedule for June 2020.

Answer 1

Answer:

Cost of goods manufactured= $75,260

Explanation:

Giving the following information:

Indirect factory labor $5,150

Factory utilities $500

Direct materials used 22,360

Depreciation, factory equipment 1,620

Work in process, 6/1/20 3,480

Direct labor 42,170

Work in process, 6/30/20 4,620

Maintenance, factory equipment 2,000

Finished goods, 6/1/20 5,660

Indirect materials 2,600

Finished goods, 6/30/20 7,680

Factory manager’s salary 3,340

To calculate the cost of manufactured goods we need to use the following formula:

Cost of good manufactured= Beginning work in progress+ direct materials of the period + direct labor + manufactured overhead - ending work in progress

Beginning work in progress= $3,480

Direct materials = beginning inventory + purchase - ending inventory= 22,360

Direct labor= 42,170

Manufactured overhead=(Indirect factory labor + Factory utilities + Depreciation, factory equipment + Maintenance, factory equipment + Indirect materials)= 5150 + 500 + 1,620 + 2,000 + 2,600 = $11,870

Ending work in progress= 4,620

Cost of goods manufactured= 3480 + 22360 + 42170 + 11870 - 4620= $75,260