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

Answer 1

Answer:

The statement of cost of goods manufactured is given below.

Statement of Cost of Goods Manufactured

Direct Material             $ 71,000

Direct Labour Cost      $ 37,000

Indirect Labour Cost   $   2,700

Indirect Material Cost $   1,600

Utilities                         $  3,100

Maintenance               $   4,500

Supplies                      $   1,800

Depreciation               $   7,900

Property Tax               $  2,600

Total Cost                   $ 132,200

o/p WIP                       $     5,500

c/l WIP                         ($     7,500)

COGM                          $ 130,200