Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows:
Inventories
January 1
January 31
Materials
$180,000
$145,500
Work in process
334,600
290,700
Finished goods
675,000
715,000
January 31
Direct labour
$2,260,000
Materials purchased during the month
1,375,000
Factory overhead incurred during the month:
Indirect labour
115,000
Machinery depreciation
90,000
Heat, light, and power
55,000
Supplies
18,500
Property taxes
10,000
Miscellaneous costs
33,100
Required:
a. Prepare a cost of goods manufactured statement for January. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
|
Inventories
|
January 1
|
January 31
|
| Materials | $180,000 | $145,500 |
| Work in process | 334,600 | 290,700 |
| Finished goods | 675,000 | 715,000 |
|
|
January 31
|
| Direct labour | $2,260,000 |
| Materials purchased during the month | 1,375,000 |
| Factory overhead incurred during the month: | |
| Indirect labour | 115,000 |
| Machinery depreciation | 90,000 |
| Heat, light, and power | 55,000 |
| Supplies | 18,500 |
| Property taxes | 10,000 |
| Miscellaneous costs | 33,100 |
| Required: | |
| a. Prepare a cost of goods manufactured statement for January. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. |
Related questions
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 and income statement for a manufacturing company
Instructions
Amount Descriptions
Statement of Cost of Goods Manufactured
Income Statement
X
Instructions
The following information is available for The NewQuest Corporation for 2016:
| Inventories | January 1 | December 31 |
|---|---|---|
| Materials | $347,000 | $435,000 |
| Work in process | 627,000 | 590,600 |
| Finished goods | 608,200 | 571,000 |
| December 31 | |
|---|---|
| Advertising expense | $ 295,200 |
| Depreciation expense-office equipment | 44,400 |
| Depreciation expense-factory equipment | 55,000 |
| Direct labor | 669,600 |
| Heat, light, and power-factory | 22,480 |
| Indirect labor | 76,750 |
| Materials purchased | 658,600 |
| Office salaries expense | 185,300 |
| Property taxes-factory | 18,200 |
| Property taxes-office building | 32,400 |
| Rent expense-factory | 32,500 |
| Sales | 3,016,000 |
| Sales salaries expense | 419,000 |
| Supplies-factory | 15,900 |
| Miscellaneous costs-factory | 9,600 |
| Required: | |||
| A. | Prepare the 2016 statement of cost of goods manufactured.* | ||
| B. | Prepare the 2016 income statement.*
|
Star Videos, Inc., produces short musical videos for sale to retail outlets. The companyâs 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 Stockholdersâ Equity
Accounts payable $ 211,000
Retained earnings 781,400
Total liabilities and stockholdersâ 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 companyâs 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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