Question
Statement of Cost of Goods Manufactured for a Manufacturing Company
Cost data for Firetree Manufacturing Company for the month ended March 31 are as follows:
Inventories March 1 March 31
Materials $186,000 $171,030
Work in process 386,080 452,070
Finished goods 519,210 545,510
Line Item Description Amount
Direct labor $3,100,000
Materials purchased during March 2,361,490
Factory overhead incurred during March:
Line Item Description Amount
Indirect labor 283,430
Machinery depreciation 186,000
Heat, light, and power 155,000
Supplies 30,910
Property taxes 26,570
Miscellaneous costs 40,480
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
Open spreadsheet
a. Prepare a cost of goods manufactured statement for March.
Firetree Manufacturing Company
Statement of Cost of Goods Manufactured
For the Month Ended March 31
Line Item Description Amount Amount Amount
$fill in the blank 3
Direct materials:
$fill in the blank 5
fill in the blank 7
$fill in the blank 9
fill in the blank 11
$fill in the blank 13
fill in the blank 15
Factory overhead:
$fill in the blank 17
fill in the blank 19
fill in the blank 21
fill in the blank 23
fill in the blank 25
fill in the blank 27
Total factory overhead fill in the blank 28
Total manufacturing costs incurred during March fill in the blank 29
Total manufacturing costs $fill in the blank 30
fill in the blank 32
Cost of goods manufactured $fill in the blank 33
b. Determine the cost of goods sold for March.
fill in the blank 1 of 1$
Cost data for Firetree Manufacturing Company for the month ended March 31 are as follows:
Inventories March 1 March 31
Materials $186,000 $171,030
Work in process 386,080 452,070
Finished goods 519,210 545,510
Line Item Description Amount
Direct labor $3,100,000
Materials purchased during March 2,361,490
Factory overhead incurred during March:
Line Item Description Amount
Indirect labor 283,430
Machinery depreciation 186,000
Heat, light, and power 155,000
Supplies 30,910
Property taxes 26,570
Miscellaneous costs 40,480
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
Open spreadsheet
a. Prepare a cost of goods manufactured statement for March.
Firetree Manufacturing Company
Statement of Cost of Goods Manufactured
For the Month Ended March 31
Line Item Description Amount Amount Amount
$fill in the blank 3
Direct materials:
$fill in the blank 5
fill in the blank 7
$fill in the blank 9
fill in the blank 11
$fill in the blank 13
fill in the blank 15
Factory overhead:
$fill in the blank 17
fill in the blank 19
fill in the blank 21
fill in the blank 23
fill in the blank 25
fill in the blank 27
Total factory overhead fill in the blank 28
Total manufacturing costs incurred during March fill in the blank 29
Total manufacturing costs $fill in the blank 30
fill in the blank 32
Cost of goods manufactured $fill in the blank 33
b. Determine the cost of goods sold for March.
fill in the blank 1 of 1$
Answers
GPT-4o mini
To prepare the Statement of Cost of Goods Manufactured, we will go through the data step by step, starting with direct materials, labor, and factory overhead, and then computing the total manufacturing costs and cost of goods manufactured.
### Step 1: Calculate Direct Materials Used
Direct Materials Used = Beginning Materials + Materials Purchased - Ending Materials
- Beginning Materials (March 1) = $186,000
- Materials Purchased during March = $2,361,490
- Ending Materials (March 31) = $171,030
\[
\text{Direct Materials Used} = 186,000 + 2,361,490 - 171,030 = 2,376,460
\]
### Step 2: Total Factory Overhead
Factory Overhead consists of various costs. We will sum those:
- Indirect labor: $283,430
- Machinery depreciation: $186,000
- Heat, light, and power: $155,000
- Supplies: $30,910
- Property taxes: $26,570
- Miscellaneous costs: $40,480
Total Factory Overhead:
\[
283,430 + 186,000 + 155,000 + 30,910 + 26,570 + 40,480 = 722,390
\]
### Step 3: Total Manufacturing Costs
Total Manufacturing Costs = Direct Materials Used + Direct Labor + Total Factory Overhead
- Direct labor = $3,100,000
Total Manufacturing Costs:
\[
2,376,460 + 3,100,000 + 722,390 = 6,198,850
\]
### Step 4: Total Cost of Goods Manufactured
Cost of Goods Manufactured = Total Manufacturing Costs + Beginning Work in Process - Ending Work in Process
- Beginning Work in Process (March 1) = $386,080
- Ending Work in Process (March 31) = $452,070
Cost of Goods Manufactured:
\[
6,198,850 + 386,080 - 452,070 = 6,132,860
\]
### Cost of Goods Manufactured Statement
Now we can organize this into the statement format:
**Firetree Manufacturing Company**
**Statement of Cost of Goods Manufactured**
**For the Month Ended March 31**
| Line Item Description | Amount |
|----------------------------------------|-------------|
| Direct materials: | |
| Beginning materials | $186,000 |
| Add: Materials purchased during March | $2,361,490 |
| Less: Ending materials | ($171,030) |
| **Direct materials used** | **$2,376,460** |
| | |
| Direct labor | $3,100,000 |
| | |
| **Total manufacturing costs incurred** | **$5,476,460** |
| | |
| Factory overhead: | |
| Indirect labor | $283,430 |
| Machinery depreciation | $186,000 |
| Heat, light, and power | $155,000 |
| Supplies | $30,910 |
| Property taxes | $26,570 |
| Miscellaneous costs | $40,480 |
| **Total factory overhead** | **$722,390** |
| | |
| **Total manufacturing costs** | **$6,198,850** |
| | |
| Add: Beginning work in process | $386,080 |
| Less: Ending work in process | ($452,070) |
| **Cost of goods manufactured** | **$6,132,860** |
### Step 5: Cost of Goods Sold (COGS)
To find COGS, we will use:
COGS = Beginning Finished Goods + Cost of Goods Manufactured - Ending Finished Goods
- Beginning Finished Goods (March 1) = $519,210
- Ending Finished Goods (March 31) = $545,510
Calculation:
\[
COGS = 519,210 + 6,132,860 - 545,510 = 6,106,560
\]
### Final Answers
**Cost of Goods Manufactured:**
$6,132,860
**Cost of Goods Sold for March:**
$6,106,560
### Step 1: Calculate Direct Materials Used
Direct Materials Used = Beginning Materials + Materials Purchased - Ending Materials
- Beginning Materials (March 1) = $186,000
- Materials Purchased during March = $2,361,490
- Ending Materials (March 31) = $171,030
\[
\text{Direct Materials Used} = 186,000 + 2,361,490 - 171,030 = 2,376,460
\]
### Step 2: Total Factory Overhead
Factory Overhead consists of various costs. We will sum those:
- Indirect labor: $283,430
- Machinery depreciation: $186,000
- Heat, light, and power: $155,000
- Supplies: $30,910
- Property taxes: $26,570
- Miscellaneous costs: $40,480
Total Factory Overhead:
\[
283,430 + 186,000 + 155,000 + 30,910 + 26,570 + 40,480 = 722,390
\]
### Step 3: Total Manufacturing Costs
Total Manufacturing Costs = Direct Materials Used + Direct Labor + Total Factory Overhead
- Direct labor = $3,100,000
Total Manufacturing Costs:
\[
2,376,460 + 3,100,000 + 722,390 = 6,198,850
\]
### Step 4: Total Cost of Goods Manufactured
Cost of Goods Manufactured = Total Manufacturing Costs + Beginning Work in Process - Ending Work in Process
- Beginning Work in Process (March 1) = $386,080
- Ending Work in Process (March 31) = $452,070
Cost of Goods Manufactured:
\[
6,198,850 + 386,080 - 452,070 = 6,132,860
\]
### Cost of Goods Manufactured Statement
Now we can organize this into the statement format:
**Firetree Manufacturing Company**
**Statement of Cost of Goods Manufactured**
**For the Month Ended March 31**
| Line Item Description | Amount |
|----------------------------------------|-------------|
| Direct materials: | |
| Beginning materials | $186,000 |
| Add: Materials purchased during March | $2,361,490 |
| Less: Ending materials | ($171,030) |
| **Direct materials used** | **$2,376,460** |
| | |
| Direct labor | $3,100,000 |
| | |
| **Total manufacturing costs incurred** | **$5,476,460** |
| | |
| Factory overhead: | |
| Indirect labor | $283,430 |
| Machinery depreciation | $186,000 |
| Heat, light, and power | $155,000 |
| Supplies | $30,910 |
| Property taxes | $26,570 |
| Miscellaneous costs | $40,480 |
| **Total factory overhead** | **$722,390** |
| | |
| **Total manufacturing costs** | **$6,198,850** |
| | |
| Add: Beginning work in process | $386,080 |
| Less: Ending work in process | ($452,070) |
| **Cost of goods manufactured** | **$6,132,860** |
### Step 5: Cost of Goods Sold (COGS)
To find COGS, we will use:
COGS = Beginning Finished Goods + Cost of Goods Manufactured - Ending Finished Goods
- Beginning Finished Goods (March 1) = $519,210
- Ending Finished Goods (March 31) = $545,510
Calculation:
\[
COGS = 519,210 + 6,132,860 - 545,510 = 6,106,560
\]
### Final Answers
**Cost of Goods Manufactured:**
$6,132,860
**Cost of Goods Sold for March:**
$6,106,560