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Chapter 16: Q42CP (page 904)

This is the first problem in a sequence of problems for Piedmont Computer Company, a manufacturer of personal computers and tablets. During its first month of manufacturing, Piedmont Computer Company incurred the following manufacturing costs:

Balances: Beginning Ending

Direct Materials \( 10,500 \) 9,700

Work-in-Process Inventory 0 17,000

Finished Goods Inventory 0 31,000

Other information:

Direct materials purchases $ 16,000

Plant janitorial services 500

Sales salaries expense 10,000

Delivery expense 1,600

Sales revenue 1,100,000

Utilities for plant 16,000

Rent on plant 9,000

Customer service hotline costs 19,000

Direct labor 210,000

Prepare a schedule of cost of goods manufactured for Piedmont Computer Company for the month ended January 31, 2020.

Short Answer

Expert verified

The cost of goods manufactured is $235,300.

Step by step solution

01

Step-by-Step SolutionStep 1: Definition of direct materials

The direct materials are defined as the raw materials which are used in the production process directly by the company.

02

Preparation of schedule of cost of goods manufactured

Piedmont Computer Company
Schedule of cost of goods manufactured
Month Ended January 31, 2020

Amount ($)

Amount ($)

Amount ($)

Beginning WIP Inventory

$0

Direct Material Used:

Beginning Direct Materials

$10,500

Purchases of direct material

16,000

Direct Materials Available for use

26,500

Ending Direct Materials

-9,700

Direct Material Used

16,800

Direct Labor

210,000

Manufacturing Overhead

Plant Janitorial Services

500

Utilities For plant

16,000

Rent on plant

9,000

Total manufacturing Overhead

25,500

Total manufacturing cost incurred during month

252,300

Total manufacturing cost to account for

252,300

Ending WIP Inventory

-17,000

Cost of goods manufactured

$235,300

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