Cost of Goods Manufactured for a Manufacturing CompanyTwo items are omitted from each of the following three lists of cost of goods manufactured statement data. Determine the amounts of the missing items, identifying them by letter.Work in process inventory, August 1$2,100$18,500(e)Total manufacturing costs incurred during August14,700(c)108,800Total manufacturing costs(a)$216,500$118,100Work in process inventory, August 313,20045,500(f)Cost of goods manufactured(ь)(d)$99,200a.b. $C.d.e.f.

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Cost of Goods Manufactured for a Manufacturing Company
Two items are omitted from each of the following three lists of cost of goods manufactured statement data. Determine the amounts of the missing items, identifying them by letter.
Work in process inventory, August 1
$2,100
$18,500
(e)
Total manufacturing costs incurred during August
14,700
(c)
108,800
Total manufacturing costs
(a)
$216,500
$118,100
Work in process inventory, August 31
3,200
45,500
(f)
Cost of goods manufactured
(ь)
(d)
$99,200
a.
b. $
C.
d.
e.
f.

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Manufacturing costs are the expenses directly associated to the product's construction. The assessment of the per-item cost of doing business must include both production and manufacturing costs.

Typically, manufacturing costs are separated into three categories:

Direct materials are the costs of materials that can be traced back to the product, such as aluminum in beverage cans.
Direct labor refers to the pay and benefits obtained by employees who are physically involved in the transformation of raw materials into a finished product.
Manufacturing overhead encompasses all other costs encountered during the manufacturing process. These indirect costs include repairs and maintenance, depreciation of production equipment, utilities, manufacturing supervisor wages, and so on.

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