To prepare the Schedule of the Cost of Finished Goods Manufactured, we need to calculate the various components of the cost of goods manufactured.
1. Direct Materials used:
Direct Materials used = Beginning Materials Inventory + Purchases - Ending Materials Inventory
= $20,000 + Purchases - $24,000
= $Purchases - $4,000 (Equation 1)
2. Direct Labor:
Direct Labor = $120,000
3. Manufacturing Overhead:
Manufacturing Overhead = Administrative Expenses
= $310,000
4. Total Manufacturing Costs:
Total Manufacturing Costs = Direct Materials used + Direct Labor + Manufacturing Overhead
= ($Purchases - $4,000) + $120,000 + $310,000
= ($Purchases + $426,000) (Equation 2)
5. Cost of Goods Manufactured:
Cost of Goods Manufactured = Beginning Work in Process Inventory + Total Manufacturing Costs - Ending Work in Process Inventory
= $12,000 + ($Purchases + $426,000) - $8,000
= $Purchases + $430,000 (Equation 3)
Now, to calculate the values for the Schedule of the Cost of Finished Goods Manufactured, we need additional information about purchases and beginning and ending inventories. Please provide the following:
- Purchases of materials during the year.
- Beginning and ending inventories for work in process.