Begin by preparing the schedule of cost of goods manufactured (in millions). Start with the direct materials and labor costs, then indirect manufacturing costs, and finally complete the schedule by calculating the cost of goods manufactured.

Question

Adriana Dickerson

Business

22 February, 05:30

Begin by preparing the schedule of cost of goods manufactured (in millions). Start with the direct materials and labor costs, then indirect manufacturing costs, and finally complete the schedule by calculating the cost of goods manufactured.

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Answers (1)

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Adrian Franco · Answer 1

Suppose (open) Finished goods = 171000

Opening work in process = 63000

ending work in process = 84000

Opening material = 72000

Raw material purchased during the year = 467000

Raw material (ending) = 93000

Actual labour hour used = 6000 hours

Predetermind rate = $6/hour

units produced = 100 units

Explanation:

Step#1 - Calculate Total manufacturing cost=?

total manufacturing cost = direct materiel used + direct labor used + Factory overhead.

= 446000+600000+36000=1082000

Direct material used=?

(Opening) Raw material = 72000

Ad:: Raw material purchased = 467000

539000

less: Raw material (ending) = (93000)

Raw material used 446000

Labour used=?

labour used = number of labour hours to produce * units produced

= 6000 * 100 = 600000

Indirect overhead = ?

Indirect overhead = predetermined overhead rate * labour hour used

= 6 * 6000 = 36000

Schedule of cost of goods manufactured=? (COGM)

Total manufacturing cost = 1082000

Add: work in process (open) = 63000

1145000

less: work in process (end) = (84000)

Cost of goods manufactured 1061000