During August, Radio Company\'s purchases of direct materials totaled $1 39,00;
ID: 2434494 • Letter: D
Question
During August, Radio Company's purchases of direct materials totaled $1 39,00; direct labor for the month was 3,400 hours at $8.75 per hour. Radio also incurred the following overhead costs: utilities, $5,870; supervision, $16,600; indirect materials, $6,750; depreciation, $6,200; insurance, $1,830; and miscellaneous, $I, 100. Beginning inventory accounts were as follows: Materials Inventory, $48,600; Work in Process Inventory, $54,250; and Finished Goods Inventory, $38,500. Ending inventory accounts were as follows: Materials Inventory, $50,100; Work in Process Inventory, $48,400; and Finished Goods Inventory, $37,450. From the information given, prepare a statement of cost of goods ma nufactured.Explanation / Answer
Particulars
$
$
$
Work in progress inventory beginning
54,250.00
Direct materials
Materials inventory beginning
48,500.00
Direct materials purchased
139,000.00
187,500.00
Less: Materials inventory at the end
50,100.00
Direct materials
137,400.00
Direct labor 3400hrs×8.75per hr
29,750.00
Manufacturing over heads
utilities
5,870.00
Supervision
16,600.00
Indirect material
6,750.00
Depreciation
6,200.00
Insurance
1,830.00
Miscellaneous
1,100.00
38,350.00
Total manufacturing overheads
205,500.00
Total work in progress
259,750.00
Less: Work in progress at the end
48,400.00
Cost of goods manufactured
211,350.00
Particulars
$
$
$
Work in progress inventory beginning
54,250.00
Direct materials
Materials inventory beginning
48,500.00
Direct materials purchased
139,000.00
187,500.00
Less: Materials inventory at the end
50,100.00
Direct materials
137,400.00
Direct labor 3400hrs×8.75per hr
29,750.00
Manufacturing over heads
utilities
5,870.00
Supervision
16,600.00
Indirect material
6,750.00
Depreciation
6,200.00
Insurance
1,830.00
Miscellaneous
1,100.00
38,350.00
Total manufacturing overheads
205,500.00
Total work in progress
259,750.00
Less: Work in progress at the end
48,400.00
Cost of goods manufactured
211,350.00
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