Ferrell, Inc used $213,000 of direct materials and incurred $111,000 of direct labor costs during the year

Question

Indirect labor amounted to $8,100, while indirect materials used totaled $4,800. Other operating costs pertaining to the factory included utilities of $9,300; maintenance of $13,500; repairs of $5,400; depreciation of $23,700; and property taxes of $7,800. There was no beginning or ending finished goods inventory. The Work-in-Process Inventory account reflected a balance of $16,500 at the beginning of the period and $22,500 at the end of the period.

Required: Prepare a schedule of cost of goods manufactured for Ferrell, Inc using the format below.

Cost of Goods Manufactured
Beginning Work-in-Process Inventory
Direct Materials Used
Direct Labor
Manufacturing Overhead:
Indirect Labor Used
Indirect Materials
Utilities
Maintenance
Repairs
Depreciation
Property Taxes
Total Manufacturing Overhead
Total Manufacturing Costs Incurred during the Year
Total Manufacturing Costs to Account For
Ending Work-in-Process Inventory
Cost of Goods Manufactured

What will be an ideal response

Answer 1

Schedule of Cost of Goods Manufactured
Beginning Work-in-Process Inventory $16,500
Direct Materials Used $213,000
Direct Labor 111,000
Manufacturing Overhead:
Indirect Labor $8,100
Indirect Materials Used 4,800
Utilities 9,300
Maintenance 13,500
Repairs 5,400
Depreciation 23,700
Property Taxes 7,800
Total Manufacturing Overhead 72,600
Total Manufacturing Costs Incurred during the Year 396,600
Total Manufacturing Costs to Account For 413,100
Ending Work-in-Process Inventory (22,500 )
Cost of Goods Manufactured $390,600