Question

Problem: Show all you work. From the account balances listed below, prepare a schedule of cost of goods manufactured for Sampson Manufacturing Company for the month ended December 31, 2016. Finished Goods Inventory, December 31 Factory Supervisory Salaries Income Tax Expense Raw Materials Inventory, December 1 Work In Process Inventory, December 31 Sales Salaries Expense Factory Depreciation Expense Finished Goods Inventory, December 1 Raw Materials Purchases Work In Process Inventory, December 1 Factory Utilities Expense Direct Labor Raw Materials Inventory, December 31 Sales Returns and Allowances Indirect Labor Account Balances $42,000 12,000 18,000 12,000 15,000 14,000 8,000 35,000 105,000 25,000 6,000 70,000 19,000 5,000 21,000

Answer 1

Schedule of Cost of Goods Manufactured
Raw materials inventory, December 1	12,000
Raw materials purchases	105,000
Total raw materials available	117,000
Raw materials inventory, December 31	-19,000
Direct materials used	98,000
Direct labor	70,000
Manufacturing overheads:
Factory supervisory salary	12,000
Factory depreciation expense	8,000
Factory utilities expense	6,000
Indirect labor	21,000
Total manufacturing overheads	215,000
Work in process inventory, December 1	25,000
Work in process inventory, December 31	-15,000
Cost of goods manufactured	$225,000

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