Question

An incomplete cost of goods manufactured schedule is presented below. Complete the cost of goods manufactured schedule for Hobbit Company.
HOBBIT COMPANY Cost of Goods Manufactured Schedule For the Year Ended December 31, 2020

Work in process (1/1) $219,610
Direct materials
Raw materials inventory (1/1) $51240
Add: Raw materials purchases 160,200
Total raw materials available for use 211440
Less: Raw materials inventory (12/31) 29,310
Direct materials used $182,130
Direct labor
Manufacturing overhead Indirect labor 26,980
Factory depreciation 45,020
Factory utilities 72,870
Total overhead 144,870
Total manufacturing costs 327000
Total cost of work in process 631170
Less: Work in process (12/31) 84,330
Cost of goods manufactured $546,840

Answer 1

Answer:

Hobbit Company

Cost of goods manufactured schedule

Work in process (1/1)                                                          $219,610

Direct materials

Raw materials inventory (1/1)                         $51240

Add: Raw materials purchases                 $160,200

Total raw materials available for use         $211440

Less: Raw materials inventory (12/31)        ($29,310)

Direct materials used                                                       $182,130

Direct labor                                                                       $304,170

Manufacturing overhead Indirect labor                          $26,980

Factory depreciation                                                        $45,020

Factory utilities                                                                  $72,870

Total overhead                                                                $144,870

Total manufacturing costs                                             $327,000

Total cost of work in process                                         $631,170

Less: Work in process (12/31)                                          $84,330

Cost of goods manufactured                                       $546,840

Explanation:

The cost of goods manufactured schedule is a report consisting of manufacturing costs incurred during the production period.

Direct Labor = Total cost of work in process  - Total manufacturing costs

                     = $631,170 - $327,000

                     = $304,170