Ferrell, Inc. used $213,000 of direct materials and incurred $111,000 of direct
ID: 2456050 • Letter: F
Question
Ferrell, Inc. used $213,000 of direct materials and incurred $111,000 of direct labor costs during the year. Indirect labor amounted to $8,100, while indirect materials used totaled $4,800. Other operating costs pertaining to the factory included utilities of $9,300; maintenance of $13,500; repairs of $5,400; depreciation of $23,700; and property taxes of $7,800. There was no beginning or ending finished goods inventory. The Work-in-Process Inventory account reflected a balance of $16,500 at the beginning of the period and $22,500 at the end of the period.
Required: Prepare a schedule of cost of goods manufactured for Ferrell, Inc. using the format below.
Cost of Goods Manufactured
Beginning Work-in-Process Inventory
Direct Materials Used
Direct Labor
Manufacturing Overhead:
Indirect Labor Used
Indirect Materials
Utilities
Maintenance
Repairs
Depreciation
Property Taxes
Total Manufacturing Overhead
Total Manufacturing Costs Incurred during the Year
Total Manufacturing Costs to Account For
Ending Work-in-Process Inventory
Cost of Goods Manufactured
Beginning Work-in-Process Inventory
Direct Materials Used
Direct Labor
Manufacturing Overhead:
Indirect Labor Used
Indirect Materials
Utilities
Maintenance
Repairs
Depreciation
Property Taxes
Total Manufacturing Overhead
Total Manufacturing Costs Incurred during the Year
Total Manufacturing Costs to Account For
Ending Work-in-Process Inventory
Cost of Goods Manufactured
Explanation / Answer
Schedule of cost of goods manufactured Amount Beginning WIP Inventory 16500 Direct Material Used 213000 Direct Labour 111000 Manufacturing Overhead Indirect Labour 8100 Indirect Material 4800 Utilities 9300 Maintenance 13500 Repairs 5400 Property Taxes 7800 Depreciation 23700 Total manufacturing overhead 72600 Total Manufacturing cost incurred during the year 436800 Total Manufacturing cost to account for 436800 Ending WIP Inventory 22500 Cost of goods manufactured 414300
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