lish (11 Simple Plus Manufacturing Company has information on their cost and expenses the year ending December 31, 2020 Raw materials, 1/1/20 $ 60,000 Raw materials purchases $410,000 Property taxes, factory building $12,000 Factory insurance $ 56,000 Sales (net) $3,000,000 Indirect materials $30,000 Work in process, 12/31/20 $100,000 Finished goods, 1/1/20$220,000 Finished goods, 12/31/20 $240,000 Direct labor $700,000 2 Indirect labor $180,000 J Factory machinery rent $80,000 Factory utilities $130,000 Factory utilities $130,000 Factory utilities $130,000 Factory utilities $130,000 Depreciation, factory building $48,000 J 10/25/2022 10:18 AM HEE 99%
lish (11 Simple Plus Manufacturing Company has information on their cost and expenses the year ending December 31, 2020 Raw materials, 1/1/20 $ 60,000 Raw materials purchases $410,000 Property taxes, factory building $12,000 Factory insurance $ 56,000 Sales (net) $3,000,000 Indirect materials $30,000 Work in process, 12/31/20 $100,000 Finished goods, 1/1/20$220,000 Finished goods, 12/31/20 $240,000 Direct labor $700,000 2 Indirect labor $180,000 J Factory machinery rent $80,000 Factory utilities $130,000 Factory utilities $130,000 Factory utilities $130,000 Factory utilities $130,000 Depreciation, factory building $48,000 J 10/25/2022 10:18 AM HEE 99%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
REQUIRED:
Prepare a cost of goods manufactured schedule for Simple plus Manufacturing Company for 2019.
a. prime cost
b. factory
Transcribed Image Text:lish (11
Simple Plus Manufacturing Company has information on their cost and expenses the year
ending December 31, 2020
Raw materials, 1/1/20 $ 60,000
Raw materials purchases $410,000
Property taxes, factory building $12,000
Factory insurance $ 56,000
Sales (net) $3,000,000
Indirect materials $30,000
Work in process, 12/31/20 $100,000
Finished goods, 1/1/20$220,000
Finished goods, 12/31/20 $240,000
Direct labor $700,000
Indirect labor $180,000
Factory machinery rent $80,000
Factory utilities $130,000
Factory utilities $130,000
Factory utilities $130,000
Factory utilities $130,000
Depreciation, factory building $48,000
10/25/2022 10:18 AM
LE3E 99%
J
Expert Solution
Step 1 Introduction
Prime Cost :— It is the sum of all direct costs incurred in the manufacturing of product during the period.
Factory Overhead :— It is the sum of all Indirect costs incurred in the manufacturing of product during the period.
Total Manufacturing Cost :— It is calculated by adding prime cost and factory overhead.
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