Question

Required information The following selected account balances are provided for Delray Mfg. Sales Raw materials inventory, Dec. 31, 2016 Work in process inventory, Dec. 31, 2016 Finished goods inventory, Dec. 31, 2016 Raw materials purchases Direct labor Factory computer supplies used Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and administrative expenses Raw materials inventory, Dec. 31, 2017 Work in process inventory, Dec. 31, 2017 Finished goods inventory, Dec. 31, 2017 $ 1,143,000 40,000 50,800 65,100 155,900 250,000 15, 200 42,000 5,250 51,000 89,000 130,000 47,600 46,400 74,100 Prepare its schedule of cost of goods manufactured for the year ended December 31, 2017

Answer 1

DELRAY MFG.
COST OF GOODS SOLD OF MANUFACTURED
FOR THE YEAR ENDED DECEMBER 31, 2017
	Amount	Amount
Current manufacturing costs:
Cost of materials placed in production:
Opening Raw materials	$               40,000
Add: Purchases	$           1,55,900
Total Available for Sale	$           1,95,900
Closing Raw materials	$               47,600	$           1,48,300
Factory Overhead
Direct Labour	$           2,50,000
Factory Computer Supplies used	$               15,200
Indirect Labor	$               42,000
Repairs - Factory Equipment	$                 5,250
Rent Cost of Factory building	$               51,000
		$           3,63,450
Opening Work-in-process,		$              50,800
Total costs in process		$           5,62,550
Ending Work-in-process		$              46,400
Cost of goods manufactured		$           5,16,150
DELRAY MFG.
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2017
Sales Revenue		$        11,43,000
Cost of Goods Sold:
Opening Finished Goods inventory	$               65,100
Add: Cost of Goods manufactured	$           5,16,150
Cost of goods available for sale	$           5,81,250
Less: Ending finished Goods	$               74,100
Cost of Goods Sold		$           5,07,150
Operating Expenses
Advertising Expenses	$               89,000
General and administrative expenses	$           1,30,000
Total Operating expenses		$           2,19,000
Operating Income		$           2,88,150