Question

Required information The following selected account balances are provided for Delray Mfg. Sales Raw materials inventory, beginning Work in process inventory, beginning Finished goods inventory, beginning Raw materials purchases Direct labor Factory supplies used (indirect materials) Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and administrative expenses Raw materials inventory, ending Work in process inventory, ending Finished goods inventory, ending 1,417,000 38,000 53,300 66,000 176,000 230,000 18,300 41,000 5,250 58,000 103,000 127,000 40,800 46,300 71,300 Prepare its schedule of cost of goods manufactured for the current year ended Decembe

Answer 1

Delray Manufacturing

Schedule of Cost of Goods Manufactured

For the Year Ended December

Particulars	Amount	Amount
Direct Materials
Beginning Inventory Raw Materials	38,000
Add: Purchase of Raw Materials	176,000
Raw Materials available for Use	214,000
Less: Ending Balance Raw Materials	40,800
Direct Labour Used		173,200
Direct Labour		230,000
Manufacturing Overhead
Factory Supplies Used	18,300
Indirect Labour	41,000
Repairs-Factory Equipment	5,250
Rent Cost of Factory Building	58,000
Total Manufacturing Overheads		122,550
Total Manufacturing Costs		525,750
Add: Beginning Balance of Work in Process		53,300
Total Work in Process		579,050
Less: Ending Balance of Work in Process		46,300
Cost of Goods Manufactured		532,750

Supporting Work

Total Manufacturing Costs = Direct Materials Used + Direct Labour + Total Manufacturing Overhead