Question

Statement of Cost of Goods Manufactured for a Manufacturing Company

Answer 1

Answer:

Johnstone Manufacturing Company

Statement of Cost of Goods Manufactured

Raw Materials                                                         $298,040

Direct labor                                                              $319,050

Factory overhead incurred :

Indirect labor                                                            $34,030

Machinery depreciation                                         $20,560

Heat, light, and power                                              $7,090

Supplies                                                                     $5,670

Property taxes                                                           $4,960

Miscellaneous costs                                                 $9,220

Add Opening Work in process Inventory             $116,990

Less Closing Work in process Inventory              (105,290)

Cost of Goods Manufactured                                $710,320

Explanation:

Cost of Goods Manufactured Statement, is a summary of costs incurred to manufacture products.

Calculation of Raw Materials used in Production.

Raw Materials T - Account

Debit :

Opening Balance                                              $177,250

Purchases                                                         $340,320

Totals                                                                 $457,570

Credit :

Closing Balance                                                $159,530

Work In Process (Balancing figure)                $298,040

Totals                                                                $457,570