Question

Required information

The following selected account balances are provided for Delray Mfg.

Sales	$	1,250,000
Raw materials inventory, Dec. 31, 2016		37,000
Work in process inventory, Dec. 31, 2016		53,900
Finished goods inventory, Dec. 31, 2016		62,750
Raw materials purchases		175,600
Direct labor		225,000
Factory computer supplies used		17,840
Indirect labor		47,000
Repairs—Factory equipment		5,250
Rent cost of factory building		57,000
Advertising expense		94,000
General and administrative expenses		129,300
Raw materials inventory, Dec. 31, 2017		42,700
Work in process inventory, Dec. 31, 2017		41,500
Finished goods inventory, Dec. 31, 2017		67,300

Prepare its schedule of cost of goods manufactured for the year ended December 31, 2017.

Required information DELRAY MFG. Schedule of Cost of Goods Manufactured For Year Ended December 31, 2017 Direct materials: Raw materials inventory, December 31, 2016 $ 37,000 Add: Raw materials purchases © 190,800 X Raw materials available for use $ 227,800 Less: Raw materials inventory, December 31, 43,900 2016 Direct materials used Direct labor $ 183,900 246,000 Ⓡ Factory overhead: Factory computer supplies used Indirect labor Repairs—Factory equipment Rent cost of factory building 22,000 X 42,000 X 5,250 50,000 $ $ Total factory overhead costs Total manufacturing costs Add: Work in process inventory, December 31, 2017 X Total cost of work in process Less: Work in process inventory, December 31, 2017 Cost of goods manufactured 119,250 549, 150 58,700 X 607,850 47,000 X 560,850

Answer 1

Schedule of Cost of goods manufactured

Direct material used
Raw material inventory, December 31,2016	37000
Raw material purchase	175600
Total material available	212600
Less: Raw material inventory December 31,2017	-42700
Direct material used		169900
Direct labor		225000
Factory overhead
Factory computer supplies used	17840
Indirect labor	47000
Repairs—Factory equipment	5250
Rent cost of factory building	57000
Total factory overhead		127090
Total manufacturing cost		521990
Add: Work in process inventory, December 31,2016		53900
Total cost of work in process		575890
Less: Work in process inventory December 31,2017		-41500
Cost of goods manufactured		534390