Question

Can someone help me solve this problem; I'm having a hard time getting the correct answer for "Total manufacturing costs incurred during January"?? any feedback will be great.

Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows: Inventories January 31 $132,020 Materials Work in process Finished goods January 1 $151,750 101,670 77,390 88,450 88,450 Direct labor $273,150 291,360 Materials purchased during January Factory overhead incurred during January: Indirect labor 29,140 17,600 Machinery depreciation Heat, light, and power Supplies 6,070 4,860 Property taxes 4,250 Miscellaneous costs 7,890 a. Prepare a cost of goods manufactured statement for January Sandusky Manufacturing Company Statement of Cost of Goods Manufactured For the Month Ended January 31

Answer 1

Statement of cost of goods manufactured

For the month ended January 31

Particulars	Amount	Amount
Work in progress inventory, January 1 (A)		101670
Direct Materials:
Material Inventory, January 1	151750
Purchases	291360
Cost of materials available for use	443110
Material Inventory, January 31	132020
Cost of direct materials used in production (B)		311090
Direct Labour (C)		273150
Factory Overhead:
Indirect Labour	29140
Machinery Depreciation	17600
Heat, Light and Power	6070
Supplies	4860
Property Taxes	4250
Miscellaneous Costs	7890
Total factory Overhead (D)		69810
Total Manufacturing Cost incurred during January(A+B+C+D)		755720
Total Manufacturing Costs		755720
Work in progress, January 31		88450
Cost of goods manufactured		667270
Add : Finished Goods, January 1	77390
Less: Finished Goods, January 31	(88450)
Cost of Goods Sold		656210

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