Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during the current year. 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, supplies 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. Prepare a statement of cost of goods manufactured. Allen Company Statement of Cost of Goods Manufactured For the Year Ended December 31

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Business

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30 March, 03:54

Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during the current year. 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, supplies 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. Prepare a statement of cost of goods manufactured. Allen Company Statement of Cost of Goods Manufactured For the Year Ended December 31

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Gloria Crosby · Answer 1

The statement of cost of goods manufactured is given below.

Statement of Cost of Goods Manufactured

Direct Material $ 71,000

Direct Labour Cost $ 37,000

Indirect Labour Cost $ 2,700

Indirect Material Cost $ 1,600

Utilities $ 3,100

Maintenance $ 4,500

Supplies $ 1,800

Depreciation $ 7,900

Property Tax $ 2,600

Total Cost $ 132,200

o/p WIP $ 5,500

c/l WIP ($ 7,500)

COGM $ 130,200