Question

Cost data for Johnstone Manufacturing Company for the month ended March 31 are as follows: Inventories March 1 March 31 Materials $210,000 $193,100 Work in process 435,900 510,400 Finished goods 586,200 615,900 Direct labor $3,500,000 Materials purchased during March 2,666,200 Factory overhead incurred during March: Indirect labor 320,000 Machinery depreciation 210,000 Heat, light, and power 175,000 Supplies 34,900 Property taxes 30,000 Miscellaneous costs 45,700 a. Prepare a cost of goods manufactured statement for March.

Answer 1

Answer:

Cost of goods manufactured statement for March

Direct labor                                                     $3,500,000

Materials                                                           $2,683,100

Indirect labor                                                      $320,000

Machinery depreciation                                     $210,000

Heat, light, and power                                        $175,000

Supplies                                                                $34,900

Property taxes                                                      $30,000

Miscellaneous costs                                             $45,700

Add Opening Work in process Inventory         $435,900

Less Closing Work in process Inventory          ($510,400)

Cost of goods manufactured                          $6,924,200

Explanation:

Prepare a Raw  Materials T - Account to determine the cost transferred to Manufacturing Account for Raw Materials.

Raw Materials T - Account

Debits  :

Opening Balance                                       $210,000

Purchases                                               $2,666,200

Totals                                                       $2,876,200

Credits :

Closing Balance                                          $193,100

Materials transferred to Production       $2,683,100

Totals                                                       $2,876,200