Accounting

1) South State Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during 2012. Indirect labor amounted to $2,700 while indirect materials used totaled $1,600. Other operating costs pertaining to the factory included utilities of $3,100; maintenance of $4,500; repairs of $1,800; depreciation of $7,900; and property taxes of $2,600. There was no beginning or ending finished goods inventory, but work in process inventory began the year with a $5,500 balance and ended the year with a $7,500 balance.

Required: Prepare a schedule of cost of goods manufactured for South State Company using the format below.

COST OF GOODS MFGD

Beginning work in process | | | |

Direct materials used: | | | |

Direct labor | | | |

Manufacturing overhead: | | | |

Indirect labor | | | |

Indirect materials | | | |

Utilities | | | |

Maintenance | | | |

Repairs | | | |

Depreciation | | | |

Property taxes | | | |

Total manufacturing overhead | | | |

Total mfg costs incurred | | | |

Total mfg costs to account for | | | |

Ending work in process | | | |

Cost of goods manufactured | | | |

Answer:

COST OF GOODS MFGD | | | |

Beginning work in process | | | $5,500 |

Direct materials used: | | $71,000 | |

Direct labor | | 37,000 | |

Manufacturing overhead: | | | |

Indirect labor | $2,700 | | |

Indirect materials | 1,600 | | |

Utilities | 3,100 | | |

Maintenance | 4,500 | | |

Repairs | 1,800 | | |

Depreciation | 7,900 | | |

Property taxes | 2,600 | | |

Total manufacturing overhead | | $24,200 | |

Total mfg costs incurred | | | $132,200 |

Total mfg costs to account for | | | 137,700 |

Ending work in process | | | (7,500) |

Cost of goods manufactured | | | $130,200 |

2) Arturo Manufacturing Company provided the following information for...