Business

Juliet Wilkinson

20 December, 20:46

Consider the following account balances (in thousands) for the Peterson Company.

Peterson Company Beginning of 2017 End of 2017

Direct materials inventory 21,000 23,000

Work-in-process inventory 26,000 25,000

Finished-goods inventory 13,000 20,000

Purchases of direct materials 74,000

Direct manufacturing labor 22,000

Indirect manufacturing labor 17,000

Plant insurance 7,000

Depreciation - plant, building, and equipment 11,000

Repairs and maintenance - plant 3,000

Marketing, distribution, and customer-service costs 91,000

General and administrative costs 24,000

Requirement

1. Prepare a schedule for the cost of goods manufactured for 2017.

Begin by preparing the schedule of cost of goods manufactured (in thousands).

Start with the direct materials and labor costs, then indirect manufacturing costs, and complete the schedule by calculating the cost of goods manufactured.