The following data are taken from the general ledger and other records of Black Hills Manufacturing Co. on January 31, the end of the first month of operations in the current fiscal year: Sales 75,000 Materials Inventory Jan 1 25,000 Work in Process Inventory Jan 1 24,000 Finished goods inventory Jan 1 32,000 Materials Purchased 21,000 Direct Labor 18,000 Factory overhead (including 1,000 of indirect materials used and 3,000 indirect labor) 12,000 Selling and Admin expense 10,000 Inventories Jan 31: Materials 22,000 22,000 Work in Process 20,000 Finished Goods 30,000 Prepare a statement of the cost of goods manufactured and sold.
The following data are taken from the general ledger and other records of Black Hills Manufacturing Co. on January 31, the end of the first month of operations in the current fiscal year: Sales 75,000 Materials Inventory Jan 1 25,000 Work in Process Inventory Jan 1 24,000 Finished goods inventory Jan 1 32,000 Materials Purchased 21,000 Direct Labor 18,000 Factory overhead (including 1,000 of indirect materials used and 3,000 indirect labor) 12,000 Selling and Admin expense 10,000 Inventories Jan 31: Materials 22,000 22,000 Work in Process 20,000 Finished Goods 30,000 Prepare a statement of the cost of goods manufactured and sold.
The following data are taken from the general ledger and other records of Black Hills Manufacturing Co. on January 31, the end of the first month of operations in the current fiscal year: Sales 75,000 Materials Inventory Jan 1 25,000 Work in Process Inventory Jan 1 24,000 Finished goods inventory Jan 1 32,000 Materials Purchased 21,000 Direct Labor 18,000 Factory overhead (including 1,000 of indirect materials used and 3,000 indirect labor) 12,000 Selling and Admin expense 10,000 Inventories Jan 31: Materials 22,000 22,000 Work in Process 20,000 Finished Goods 30,000 Prepare a statement of the cost of goods manufactured and sold.
The following data are taken from the general ledger and other records of Black Hills Manufacturing Co. on January 31, the end of the first month of operations in the current fiscal year:
Sales
75,000
Materials Inventory Jan 1
25,000
Work in Process Inventory Jan 1
24,000
Finished goods inventory Jan 1
32,000
Materials Purchased
21,000
Direct Labor
18,000
Factory overhead (including 1,000 of indirect materials used and 3,000 indirect labor)
12,000
Selling and Admin expense
10,000
Inventories Jan 31:
Materials 22,000
22,000
Work in Process
20,000
Finished Goods
30,000
Prepare a statement of the cost of goods manufactured and sold.
Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
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.