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Rocket Company produces small gasoline-powered engines for model airplanes. Mr. Clemens, Rocket’s CFO, has presented you...

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Accounting

Rocket Company produces small gasoline-powered engines for modelairplanes. Mr. Clemens, Rocket’s CFO, has presented you with thefollowing cost information:

Direct Materials Inventory, beginning$80,000
Direct Materials Inventory, ending$122,000
Work in Process Inventory, beginning$140,000
Work in Process Inventory, ending$95,000
Direct labor$780,000
Direct materials purchases$940,000
Insurance, factory$50,000
Depreciation, factory$22,000
Depreciation, executive offices$15,000
Indirect labor$220,000
Utilities, factory$17,000
Utilities, executive offices$8,000
Property taxes, factory$18,000
Property taxes, executive offices$14,000


Using this cost information, prepare a cost of goods manufacturedschedule for Mr. Clemens.

Answer & Explanation Solved by verified expert
3.6 Ratings (636 Votes)

Cost of goods manufactured Schedule
Particulars Amount ($)
Direct materials
Direct Materials Inventory, beginning        80,000
Add : Direct materials purchases      940,000
Less : Direct Materials Inventory, ending      122,000
Direct materials used in production      898,000
Direct labor      780,000
Manufacturing overhead
Insurance, factory        50,000
Depreciation, factory        22,000
Indirect labor      220,000
Utilities, factory        17,000
Property taxes, factory        18,000
Total manufacturing overhead      327,000
Total manufacturing costs 2,005,000
Add : Work in Process Inventory, beginning      140,000
Less : Work in Process Inventory, ending        95,000
Cost of goods manufactured 2,050,000

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