Prepare a schedule of Cost of Goods Manufactured. Dream Makers is a small manufacturer of gold and platinum jewelry. It uses a job costing system that applies overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $465,800, and management budgeted 34,000 direct labor-hours. The company had no Materials, Work-in-Process, or Finished Goods Inventory at the beginning of April. These transactions were recorded during April:April insurance cost for the manufacturing property and equipment was $1,850. The premium had been paid in January.Recorded $1,060 depreciation on an administrative asset.Purchased 21 pounds of high-grade polishing materials at $16 per pound (indirect materials).Paid factory utility bill, $6,550, in cash.Incurred 4,000 hours and paid payroll costs of $160,000. Of this amount, 1,000 hours and $20,000 were indirect labor costs.Incurred and paid other factory overhead costs, $6,300.Purchased $25,000 of materials. Direct materials included unpolished semiprecious stones and gold. Indirect materials included supplies and polishing materials.Requisitioned $19,000 of direct materials and $1,700 of indirect materials from Materials Inventory.Incurred miscellaneous selling and administrative expenses, $5,800.Incurred $3,610 depreciation on manufacturing equipment for April.Paid advertising expenses in cash, $2,725.Applied factory overhead to production on the basis of direct labor hours.Completed goods costing $64,500 during the month.Made sales on account in April, $58,620. The Cost of Goods Sold was $48,700. Prepare a schedule of Cost of Goods Manufactured.Dream MakersStatement of Cost of Goods ManufacturedFor the Month Ended April 30Direct materials usedDirect laborFactory overhead appliedTotal manufacturing costs incurred during yearTotal manufacturing costs to account forCost of goods manufacturedActual overheadTotal factory overheadTotal applied overhead$19,000140,00041,100200,100

The Cost of Goods Manufactured (COGM) represents the total production cost incurred by a company…

Answered: Prepare a schedule of Cost of Goods…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Prepare a schedule of Cost of Goods Manufactured.

Dream Makers is a small manufacturer of gold and platinum jewelry. It uses a job costing system that applies overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $465,800, and management budgeted 34,000 direct labor-hours. The company had no Materials, Work-in-Process, or Finished Goods Inventory at the beginning of April. These transactions were recorded during April:

April insurance cost for the manufacturing property and equipment was $1,850. The premium had been paid in January.
Recorded $1,060 depreciation on an administrative asset.
Purchased 21 pounds of high-grade polishing materials at $16 per pound (indirect materials).
Paid factory utility bill, $6,550, in cash.
Incurred 4,000 hours and paid payroll costs of $160,000. Of this amount, 1,000 hours and $20,000 were indirect labor costs.
Incurred and paid other factory overhead costs, $6,300.
Purchased $25,000 of materials. Direct materials included unpolished semiprecious stones and gold. Indirect materials included supplies and polishing materials.
Requisitioned $19,000 of direct materials and $1,700 of indirect materials from Materials Inventory.
Incurred miscellaneous selling and administrative expenses, $5,800.
Incurred $3,610 depreciation on manufacturing equipment for April.
Paid advertising expenses in cash, $2,725.
Applied factory overhead to production on the basis of direct labor hours.
Completed goods costing $64,500 during the month.
Made sales on account in April, $58,620. The Cost of Goods Sold was $48,700.

Prepare a schedule of Cost of Goods Manufactured.
Dream Makers
Statement of Cost of Goods Manufactured
For the Month Ended April 30
Direct materials used
Direct labor
Factory overhead applied
Total manufacturing costs incurred during year
Total manufacturing costs to account for
Cost of goods manufactured
Actual overhead
Total factory overhead
Total applied overhead
$
19,000
140,000
41,100
200,100

Expert Solution

Step by step

Solved in 3 steps with 5 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions