The cost of goods manufactured schedule

Sample Solution

       

Cost of Goods Manufactured Schedule for April 2022 Beginning Raw Materials Inventory $9,800 Add: Purchases of Raw Materials $96,400 Total Available for Use 106,200 Less: Ending Raw Materials Inventory (13,900) Raw Materials Used in Production 92,300 Direct Labor 78,400 Manufacturing Overhead 156,800 Total Manufacturing Costs 327,500 Add: Beginning Work in Process 4.900 Total Cost of Goods Manufactured 332.400 Less: Ending Work In Process (3.700) Cost of Goods Manufactured for the Month $328.700 Explanation and Workings : The cost of goods manufactured is calculated by adding the beginning work-in-process inventory to total manufacturing costs and then subtracting the ending work-in-process inventory from this adjusted figure. To calculate the total manufacturing costs we need to add direct labor and overhead expenses incurred during April which are given as inputs in the question i.e., Direct labor = 78,400 & Manufacturing overhead = 156,800 .The raw materials used can be calculated by taking away the closing raw material inventory form opening raw material inventory plus purchases made during that month i.e., Purchases = 96,400 , Closing Stock= 13900 , Opening Stock 9800 hence Raw materials used = 9230