Prepare a schedule of cost of goods manufactured. Alexandria Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at thebeginning and end of 20x1.Inventory ClassificationRaw materialWork in processFinished goodsIndirect materialIndirect laborJanuary 1,20x1$ 50,000120,000140,000During 20x1, the company purchased $240,000 of raw material and spent $400,000 on direct labor. Manufacturingoverhead costs were as follows:Depreciation on plant and equipmentUtilitiesOtherDecember 31,20x1$ 70,000115,000165,000$ 12,00023,000100,00023,00030,000Sales revenue was $1,106,000 for the year. Selling and administrative expenses for the year amounted to $110,000. Thefirm's tax rate is 40 percent. Direct material:Direct laborManufacturing overhead:Total manufacturing overheadTotal manufacturing costsSubtotalALEXANDRIA ALUMINUM COMPANYSchedule of Cost of Goods ManufacturedFor the Year Ended December 31, 20x1Cost of goods manufactured$00

Answered: Direct material: Direct labor…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Prepare a schedule of cost of goods manufactured.

Alexandria Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the
beginning and end of 20x1.
Inventory Classification
Raw material
Work in process
Finished goods
Indirect material
Indirect labor
January 1,
20x1
$ 50,000
120,000
140,000
During 20x1, the company purchased $240,000 of raw material and spent $400,000 on direct labor. Manufacturing
overhead costs were as follows:
Depreciation on plant and equipment
Utilities
Other
December 31,
20x1
$ 70,000
115,000
165,000
$ 12,000
23,000
100,000
23,000
30,000
Sales revenue was $1,106,000 for the year. Selling and administrative expenses for the year amounted to $110,000. The
firm's tax rate is 40 percent.

Direct material:
Direct labor
Manufacturing overhead:
Total manufacturing overhead
Total manufacturing costs
Subtotal
ALEXANDRIA ALUMINUM COMPANY
Schedule of Cost of Goods Manufactured
For the Year Ended December 31, 20x1
Cost of goods manufactured
$
0
0

Expert Solution

Step 1: Introduce Cost of Goods Manufactured

Cost of Goods Manufactured: The term "Cost of Goods Manufactured" (COGM) is used in management accounting to refer to a schedule or statement that displays the overall costs of manufacturing a product or service. Exactly as its name indicates, the entire cost of goods manufactured and transferred into completed goods inventories for retail sale is known as the cost of goods manufactured and transferred (COGM).

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