Using the attachedPrepare a schedule of cost of goods manufactured. Beginning Balance$14,000$27,000Ending Balance$22,000$9,000Raw materialsWork in processFinished goods$62,000$77,000The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the companyestimated that it would work 33,000 machine-hours and incur $231,000 in manufacturing overhead cost. The following transactions were recorded for theyear:• Raw materials were purchased, $315,000.• Raw materials were requisitioned for use in production, $307,000 ($281,000 direct and $26,000 indirect).The following employee costs were incurred: direct labor, $377,000; indirect labor, $96,000; and administrative salaries, $172,000.Selling costs, $147,000.Factory utility costs, $10,000.Depreciation for the year was $127,000 of which $120,000 is related to factory operations and $7,000 is related to selling, general, andadministrative activities.• Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,000 machine-hours.• Sales for the year totaled $1,253,000.

Cost of Goods Manufactured: It is a term used in managerial accounting that refers to a schedule or…

Answered: Using the attached Prepare a schedule…

Business

Accounting

Using the attached Prepare a schedule of cost of goods manufactured.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Using the attached

Prepare a schedule of cost of goods manufactured.

Beginning Balance
$14,000
$27,000
Ending Balance
$22,000
$9,000
Raw materials
Work in process
Finished goods
$62,000
$77,000
The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company
estimated that it would work 33,000 machine-hours and incur $231,000 in manufacturing overhead cost. The following transactions were recorded for the
year:
• Raw materials were purchased, $315,000.
• Raw materials were requisitioned for use in production, $307,000 ($281,000 direct and $26,000 indirect).
The following employee costs were incurred: direct labor, $377,000; indirect labor, $96,000; and administrative salaries, $172,000.
Selling costs, $147,000.
Factory utility costs, $10,000.
Depreciation for the year was $127,000 of which $120,000 is related to factory operations and $7,000 is related to selling, general, and
administrative activities.
• Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,000 machine-hours.
• Sales for the year totaled $1,253,000.

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