Question

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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 1 January 31 Materials $136,500 $122,850 Work in process 92,820 83,540 Finished goods 70,980 82,310 Direct labor $245,700 Materials purchased during January 262,080 Factory overhead incurred during January: Indirect labor 26,210 Machinery depreciation 15,830 Heat, light, and power 5,460 Supplies 4,370 Property taxes 3,820 Miscellaneous costs 7,100 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

Answer a )
Sandusky Manufacturing Company
Statement of Cost of goods manufactured
For the month ended January 31	$	$
Direct Materials	285010		See working note below
Direct Labour	245700
		530710
Factory Overhead
Indirect Labor	26210
Machinery depreciation	15830
Heat light and power	5460
Supplies	4370
Total Factory Overheads		51870
Total Manufacturing cost incurred in January		582580
Total Manufacturing Costs		582580
Cost of good manufactured		582580
Answer b )
Cost of goods sold
For the month ended January 31	$	$
Cost of goods manufactured		582580
Property Tax	3820
Miscellaneous Costs	7100	10920
Cost of goods sold		593500
Assumptions
Property Tax and Miscellaneous Costs have not been
considered to be cost of goods manufactured.
However , these costs have been included into
Cost of Goods Sold

Working note for calculation of Cost of material consumed
Materials Account
Particulars	Amount	Particulars	Amount
Op bal	136500	Cost of material issued	275730
Purchases	262080
		Closing bal	122850
	398580		398580
WIP Account
Particulars	Amount	Particulars	Amount
Op bal	92820	Cost of material consumed	285010
Cost of mat issued	275730
		Cl bal	83540
	368550		368550