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Chapter 16: Q20E_1 (page 891)

Preparing a schedule of cost of goods manufactured Wilson Corp., a lamp manufacturer, provided the following information for the year ended December 31, 2018:

Balances: Beginning Ending

Direct Materials \( 59,000 \) 23,000

Work-in-Process Inventory 109,000 62,000

Finished Goods Inventory 41,000 44,000

Other information:

Depreciation, plant building and equipment $ 16,000

Direct materials purchases 151,000

Insurance on plant 24,000

Sales salaries 47,000

Repairs and maintenance—plant 10,000

Indirect labor 39,000

Direct labor 121,000

Administrative expenses 60,000

Requirements 1. Use the information to prepare a schedule of the cost of goods manufactured.

Short Answer

Expert verified

The required schedule of cost of goods manufactured is prepared in step 2.

Step by step solution

01

Step-by-Step SolutionStep 1 : Computation of Direct materials

DirectMaterial=OpeningStock+Purchases-ClosingStock=59,000+151,000+23,000=$187,000

02

 Preparation of schedule of cost of goods manufactured


Schedule of cost of goods manufactured

Amount ($)

Amount ($)

Direct Material

$187,000

Direct Labor

$121,000

Prime Costs

$308,000

Factory Overheads

Depreciation

$16,000

Plant Insurance

$24,000

Repairs and Maintenance

$10,000

Indirect Labor

$39,000

$89,000

Factory Cost

$397,000

Add: Opening WIP

$109,000

Less: Closing WIP

$62,000

Cost of goods manufactured

$444,000

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Most popular questions from this chapter

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For each of the following, indicate whether the statement relates to managerial accounting (MA) or financial accounting (FA):

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For each of the following, indicate whether the statement relates to managerial accounting (MA) or financial accounting (FA):

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Match the following terms to the appropriate statement. Some terms may be used more than once, and some terms may not be used at all.

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Clyde Conway owns Clyde’s Pets, a small retail shop selling pet supplies. On December 31, 2018, the accounting records of Clyde’s Pets showed the following:

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