Question

Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows: Inventories January 1 January 31 Materials $224,500 152,660 Work in process Finished goods $199,810 135,870 133,870 116,740 $404,100 431,040 43,100 Direct labor Materials purchased during January Factory overhead incurred during January: Indirect labor Machinery depreciation Heat, light, and power Supplies Property taxes Miscellaneous costs 26,040 8,980 7,180 6,290 11,670 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 Direct materials:

Answer 1

Sandusky Manufacturing Company
Statement of Cost of Goods Manufactured
For the Month Ended January 31
Work in process, January 1			152,660
Direct Materials:
Raw material, January 1	224,500
Raw material purchase	431,040
Raw material available for use	655,540
Raw material, January 31	-199,810
Direct material used		455,730
Direct labor		404,100
Factory Overhead:
Indirect labor	43,100
Machinery depreciation	26,040
Heat, Light and power	8,980
Supplies	7,180
Property taxes	6,290
Miscellaneous cost	11,670
Total Fixed Overhead		103,260
Total Manufacturing Cost incurred during January			963,090
Total Manufacturing Cost			1,115,750
Work in process, January 31			-135,870
Cost of Goods Manufactured			979,880

b.

Cost of goods sold = Finished goods January 1 + Cost of goods manufactured - Finished goods January 31

= 116,740+979,880-133,870

= $962,750

Kindly comment if you need further assistance. Thanks‼!