Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Spencer’s accounting records provide the following information:
Direct material:
Purchases of direct materials $2,350,000
Direct materials inventory, January 1: 290,000
Direct materials inventory, December 31: (112,000)
Direct material used= 2,528,000
Direct labor 1,100,000
Manufacturing overhead:
Indirect labor 334,000
Depreciation, factory building 525,000
Depreciation, factory equipment 416,000
Property taxes on factory 65,000
Utilities, factory 150,000
Insurance on factory 200,000
Total= 1,690,000
Work-in-process inventory, January 1: 450,000
Work-in-process inventory, December 31: 750,000
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 450,000 + 2,528,000 + 1,100,000 + 1,690,000 - 750,000= 5,018,000
