Classic manufacturing costing system uses a​ three-part classification of direct​ materials, direct manufacturing​ labor, and manufacturing overhead costs. The following items​ (in millions) pertain to Classic Corporation. Requirement Prepare an income statement and a supporting schedule of cost of goods manufactured. Begin by preparing the supporting schedule of cost of goods manufactured​ (in millions). Start with the direct materials and direct labor​ costs, then indirect manufacturing​ costs, and complete the schedule by calculating cost of goods manufactured. For Specific Date Work-in-process inventory, January 1, 2020 $12 Direct materials inventory, December 31, 2020 8 Finished-goods inventory, December 31, 2020 11 Accounts payable, December 31, 2020 20 Accounts receivable, January 1, 2020 59 Work-in-process inventory, December 31, 2020 1 Finished-goods inventory, January 1, 2020 46 Accounts receivable, December 31, 2020 30 Accounts payable, January 1, 2020 50 Direct materials inventory, January 1, 2020 35 For Year 2020 Plant utilities $10 Indirect manufacturing labor 22 Depreciation—plant and equipment 7 Revenues 358 Miscellaneous manufacturing overhead 17 Marketing, distribution, and customer-service costs 98 Direct materials purchased 82 Direct manufacturing labor 41 Plant supplies used 6 Property taxes on plant 5

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Classic manufacturing costing system uses a​ three-part classification of direct​ materials, direct manufacturing​ labor, and manufacturing overhead costs. The following items​ (in millions) pertain to
Classic Corporation.
 
Requirement
Prepare an income statement and a supporting schedule of cost of goods manufactured.
 
Begin by preparing the supporting schedule of cost of goods manufactured​ (in millions). Start with the direct materials and direct labor​ costs, then indirect manufacturing​ costs, and complete the schedule by calculating cost of goods manufactured. 

 

For Specific Date
Work-in-process inventory, January 1, 2020
$12
Direct materials inventory, December 31, 2020
8
Finished-goods inventory, December 31, 2020
11
Accounts payable, December 31, 2020
20
Accounts receivable, January 1, 2020
59
Work-in-process inventory, December 31, 2020
1
Finished-goods inventory, January 1, 2020
46
Accounts receivable, December 31, 2020
30
Accounts payable, January 1, 2020
50
Direct materials inventory, January 1, 2020
35
 
For Year 2020
Plant utilities
$10
Indirect manufacturing labor
22
Depreciation—plant and equipment
7
Revenues
358
Miscellaneous manufacturing overhead
17
Marketing, distribution, and customer-service costs
98
Direct materials purchased
82
Direct manufacturing labor
41
Plant supplies used
6
Property taxes on plant
5
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