Statement of Cost of Goods Manufactured for a ManufacturingCompany
A payment of cash (or a commitment to pay cash in the future)for the purpose of generating revenues.Cost data for SanduskyManufacturing Company for the month ended January 31 are asfollows:
Inventories January 1 January 31 Materials $175,500 $154,440 Work in process 121,100 106,560 Finished goods 91,260 103,470
Direct labor $315,900 Materials purchased during January 336,960 Factory overhead incurred during January: Indirect labor 33,700 Machinery depreciation 20,360 Heat, light, and power 7,020 Supplies 5,620 Property taxes 4,910 Miscellaneous costs 9,130
a. Prepare a cost of goods manufacturedstatement for January.
Sandusky Manufacturing Company Statement of Cost of Goods Manufactured For the Month Ended January 31 Indirect laborMachinery depreciationSuppliesWork in processinventory, January 1 $ Direct materials: Machinery depreciationMaterials inventory, January1SuppliesWork in process inventory, January 31 $ Indirect laborProperty taxesPurchasesWork in process inventory,January 31 Cost of materials available for useLess work in processinventory, January 31SuppliesWork in process inventory, January31 $ Indirect laborMaterials inventory, January 31MiscellaneouscostWork in process inventory, January 31 Cost of direct materials used in productionLess work in processinventory, January 31Materials inventory, January 1Totalmanufacturing costs $ Direct laborIndirect laborMachinery depreciationSupplies Factory overhead: Indirect laborMaterials inventory, January 1Materialsinventory, January 31Purchases $ Direct laborMachinery depreciationPurchasesWork in processinventory, January 31 Direct laborHeat, light, and powerMaterials inventory, January1Work in process inventory, January 31 Direct laborMaterials inventory, January1PurchasesSupplies Materials inventory, January 31Property taxesPurchasesWork inprocess inventory, January 31 Direct materialsMiscellaneous costsPurchasesWork in processinventory, January 31 Total factory overhead Total manufacturing costs incurred during January Total manufacturing costs $ Cost of materials available for useDirect materialsMaterialsinventory, January 31Work in process inventory, January 31 Cost of goods manufactured $
Feedback
b. Determine the The cost of finished goodsavailable for sale minus the ending finished goods inventory.costof goods sold for January.
Statement of Cost of Goods Manufactured for a ManufacturingCompany
A payment of cash (or a commitment to pay cash in the future)for the purpose of generating revenues.Cost data for SanduskyManufacturing Company for the month ended January 31 are asfollows:
| Inventories | January 1 | January 31 | ||
| Materials | $175,500 | $154,440 | ||
| Work in process | 121,100 | 106,560 | ||
| Finished goods | 91,260 | 103,470 | ||
| Direct labor | $315,900 | |
| Materials purchased during January | 336,960 | |
| Factory overhead incurred during January: | ||
| Indirect labor | 33,700 | |
| Machinery depreciation | 20,360 | |
| Heat, light, and power | 7,020 | |
| Supplies | 5,620 | |
| Property taxes | 4,910 | |
| Miscellaneous costs | 9,130 | |
a. Prepare a cost of goods manufacturedstatement for January.
| Sandusky Manufacturing Company | |||
| Statement of Cost of Goods Manufactured | |||
| For the Month Ended January 31 | |||
| Indirect laborMachinery depreciationSuppliesWork in processinventory, January 1 | $ | ||
| Direct materials: | |||
| Machinery depreciationMaterials inventory, January1SuppliesWork in process inventory, January 31 | $ | ||
| Indirect laborProperty taxesPurchasesWork in process inventory,January 31 | |||
| Cost of materials available for useLess work in processinventory, January 31SuppliesWork in process inventory, January31 | $ | ||
| Indirect laborMaterials inventory, January 31MiscellaneouscostWork in process inventory, January 31 | |||
| Cost of direct materials used in productionLess work in processinventory, January 31Materials inventory, January 1Totalmanufacturing costs | $ | ||
| Direct laborIndirect laborMachinery depreciationSupplies | |||
| Factory overhead: | |||
| Indirect laborMaterials inventory, January 1Materialsinventory, January 31Purchases | $ | ||
| Direct laborMachinery depreciationPurchasesWork in processinventory, January 31 | |||
| Direct laborHeat, light, and powerMaterials inventory, January1Work in process inventory, January 31 | |||
| Direct laborMaterials inventory, January1PurchasesSupplies | |||
| Materials inventory, January 31Property taxesPurchasesWork inprocess inventory, January 31 | |||
| Direct materialsMiscellaneous costsPurchasesWork in processinventory, January 31 | |||
| Total factory overhead | |||
| Total manufacturing costs incurred during January | |||
| Total manufacturing costs | $ | ||
| Cost of materials available for useDirect materialsMaterialsinventory, January 31Work in process inventory, January 31 | |||
| Cost of goods manufactured | $ | ||
Feedback
b. Determine the The cost of finished goodsavailable for sale minus the ending finished goods inventory.costof goods sold for January.
Related questions
Yolo Windows, a manufacturer of windows for commercial buildings, reports the following account information for last year (all costs are in thousands of dollars):
| Information on January 1 (Beginning): | |||
| Direct materials inventory | $ | 89 | |
| Work-in-process inventory | 118 | ||
| Finished goods inventory | 1,610 | ||
| Information for the year: | |||
| Administrative costs | $ | 3,630 | |
| Direct labor | 12,200 | ||
| Direct materials purchases | 8,220 | ||
| Factory and machine depreciation | 11,730 | ||
| Factory supervision | 747 | ||
| Factory utilities | 947 | ||
| Indirect factory labor | 2,940 | ||
| Indirect materials and supplies | 678 | ||
| Marketing costs | 1,510 | ||
| Property taxes on factory | 277 | ||
| Sales revenue | 45,500 | ||
| Information on December 31 (Ending): | |||
| Direct materials inventory | $ | 99 | |
| Work-in-process inventory | 140 | ||
| Finished goods inventory | 1,430 | ||
Required:
Prepare an income statement with a supporting cost of goods sold statement. (Enter your answers in thousands of dollars (i.e., 234,000 should be entered as 234).)
| YOLO WINDOWS |
|---|
| Income Statement |
| For the Year Ended December 31 |
| ($000) |
| ? | ? | |
| ? | ? | |
| ? | ? | |
| ? | ? | |
| ? | ? | |
| ? | ? | |
| Total marketing and administration cost | ||
| ? | ? |
| YOLO WINDOWS |
| Statements of Cost of Good Sold |
| For the Year Ended December 31 |
| ($000) |
| ? | ? | ||
| Manufacturing cost: | |||
| Direct Material: | ? | ||
| ? | ? | ||
| ? | ? | ||
| ? | ? | ||
| ? | ? | ||
| ? | ? | ||
| ? | ? | ||
| Manufacturing overhead: | |||
| ? | ? | ||
| ? | ? | ||
| ? | ? | ||
| ? | ? | ||
| ? | ? | ||
| ? | ? | ||
| ? | ? | ||
| ? | ? | ||
| Total Manufacturing overhead | 0 | ||
| Total manufacturing costs | ? | ||
| Total cost of work in process during the year | ? | ||
| ? | ? | ||
| Cost of goods manufactured during the year | ? | ||
| ? | ? | ||
| ? | ? | ||
| ? | ? | ||
| cost of goods sold | ? |
Star Videos, Inc., produces short musical videos for sale to retail outlets. The companyΓ’ΒΒs balance sheet accounts as of January 1 are given below.
Star Videos, Inc.
Balance Sheet
January 1
Assets
Cash $ 92,000
Accounts receivable 115,600
Inventories:
Raw materials (film, costumes) $ 17,800
Videos in process 60,200
Finished videos awaiting sale 91,200 169,200
Prepaid insurance 12,600
Studio and equipment (net) 603,000
Total assets $ 992,400
Liabilities and StockholdersΓ’ΒΒ Equity
Accounts payable $ 211,000
Retained earnings 781,400
Total liabilities and stockholdersΓ’ΒΒ equity $ 992,400
Because the videos differ in length and in complexity of production, the company uses a job-order costing system to determine the cost of each video produced. Studio (manufacturing) overhead is charged to videos on the basis of camera-hours of activity. The companyΓ’ΒΒs predetermined overhead rate for the year ($40 per camera-hour) is based on a cost formula that estimated $280,000 in manufacturing overhead for an estimated allocation base of 7,000 camera-hours. Any underapplied or overapplied overhead is closed to cost of goods sold. The following transactions were recorded for the year:
Film, costumes, and similar raw materials purchased on account, $208,500.
Film, costumes, and other raw materials issued to production, $219,500 (85% of this material was considered direct to the videos in production, and the other 15% was considered indirect).
Utility costs incurred (on account) in the production studio, $81,600.
Depreciation recorded on the studio, cameras, and other equipment, $90,000. Three-fourths of this depreciation related to actual production of the videos, and the remainder related to equipment used in marketing and administration.
Advertising expense incurred (on account), $155,500.
Salaries and wages paid in cash as follows:
Direct labor (actors and directors) $ 99,200
Indirect labor (carpenters to build sets, costume designers, and so forth) $ 100,500
Administrative salaries $ 102,400
Prepaid insurance expired during the year, $10,050 (70% related to production of videos, and 30% related to marketing and administrative activities).
Miscellaneous marketing and administrative expenses incurred (on account), $10,350.
Studio (manufacturing) overhead was applied to videos in production. The company recorded 7,250 camera-hours of activity during the year.
Videos that cost $548,000 to produce according to their job cost sheets were transferred to the finished videos warehouse to await sale and shipment.
Sales for the year totaled $1,060,000 and were all on account.
The total cost to produce the videos that were sold according to their job cost sheets was $591,810.
Collections from customers during the year totaled $1,010,000.
Payments to suppliers on account during the year, $585,000.
Underapplied or overapplied overhead $__?__.
Required:
1. Prepare a transaction analysis that records all of the above transactions.
2. Prepare a schedule of cost of goods manufactured for the year.
3. Prepare a schedule of cost of goods sold for the year.
4. Prepare an income statement for the year.
PLEASE SHOW ALL WORK AND BOLD ANSWERS. THANK YOU!!
Prepare a transaction analysis that records all of the above transactions. (Amounts to be deducted should be indicated by a minus sign.)
Prepare a schedule of cost of goods manufactured for the year.
Prepare a schedule of cost of goods sold for the year.
Prepare an income statement for the year.
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