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xercise 1-9 An incomplete cost of goods manufactured schedule is presented below

ID: 2412494 • Letter: X

Question

xercise 1-9

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, 2017For the Month Ended December 31, 2017December 31, 2017

Work in process (1/1) $215,960 Direct materials    Raw materials inventory (1/1) $

   Add: Raw materials purchases 163,890    Total raw materials available for use

   Less: Raw materials inventory (12/31) 22,350 Direct materials used $188,340 Direct labor

Manufacturing overhead    Indirect labor 18,220    Factory depreciation 39,150    Factory utilities 76,620    Total overhead 133,990 Total manufacturing costs

Total cost of work in process

Less: Work in process (12/31) 87,360 Cost of goods manufactured $546,180

Explanation / Answer

Cost of goods manufactured schedule for Hobbit Company.

HOBBIT COMPANY
Cost of Goods Manufactured Schedule

For the Year Ended December 31, 2017For the Month Ended December 31, 2017December 31, 2017

Work in process (1/1)

$215,960

Direct materials

   Raw materials inventory (1/1)

$

46,800

   Add: Raw materials purchases

163,890

   Total raw materials available for use

210,690

   Less: Raw materials inventory (12/31)

22,350

Direct materials used

$188,340

Direct labor

95,250

Manufacturing overhead

   Indirect labor

18,220

   Factory depreciation

39,150

   Factory utilities

76,620

   Total overhead

133,990

Total manufacturing costs

417,580

Total cost of work in process

633,540

Less: Work in process (12/31)

87,360

Cost of goods manufactured

$546,180

Total raw materials available for use

= Direct materials used + Raw materials inventory (12/31)

= $188,340 + 22,350

= 210,690

Raw materials inventory (1/1)

= Total raw materials available for use - Raw materials purchases

= 210,690 - 163,890

= 46,800

Total cost of work in process

= Cost of goods manufactured + Work in process (12/31)

= $546,180 + 87,360

= 633,540

Total manufacturing costs

= Total cost of work in process – Work in process (1/1)

= 633,540 - $215,960

= 417,580

Direct labor

= Total manufacturing costs – (Total overhead + Direct materials used)

= 417,580 – (133,990 + $188,340 )

= 95,250

HOBBIT COMPANY
Cost of Goods Manufactured Schedule

For the Year Ended December 31, 2017For the Month Ended December 31, 2017December 31, 2017

Work in process (1/1)

$215,960

Direct materials

   Raw materials inventory (1/1)

$

46,800

   Add: Raw materials purchases

163,890

   Total raw materials available for use

210,690

   Less: Raw materials inventory (12/31)

22,350

Direct materials used

$188,340

Direct labor

95,250

Manufacturing overhead

   Indirect labor

18,220

   Factory depreciation

39,150

   Factory utilities

76,620

   Total overhead

133,990

Total manufacturing costs

417,580

Total cost of work in process

633,540

Less: Work in process (12/31)

87,360

Cost of goods manufactured

$546,180