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How would you prepare a cost statement for these numbers using the equation:
Direct Material used + Direct Labor + Material Overhead = Current Material Finished Goods Costs + Beginning Work In Progress – Ending Work In Progress = Cost of Finished Goods MFG
Celtic Cabins Balance Sheet 6131/2017 Cash AR Invento PPE 31,000 48,000 57,000 100,000 236,000 $30,000 AP Wages Pa Accrued Li Subtotal LT Liab 27,000 8,000 10,000 45,000 RM WIP FG Total Inv 57,000 15.00 Total Debe 150,000| fotAL□labil伍11 CiS RE Tot L/OE 236,000 36,000 Control Accts Factory Labor Control MOH July Events 1. Received $13,000 of Raw Materials 2. Requisitioned $21,000 of Direct Material Job 147: $10,000 Job 187: $3,000 Job 218: $8,000 s totalled S Indirect Labor: $1,500 Job 147: $3,000 Job 149: $2,500 Job 187: $7,000 Job 218: $4,500 Wages $7,200 5. Pay Accts Payable: $9,000 4. Pay Factory 6. Received Utility Bill: $8,700 7. Monthly accrual of prop taxes and ins and equip dep. $24,000 8. Supervisor’s Salary: $6,000 9. Job 218 Completed 10. Job 187 Completed 11. Job 218 Delivered to Customer 12 Indirect Material requisitioned to jobs $700 Budgeted MOH Budgeted DL S $540000 $240,000 Rate: 2.25/DLS Cost Pool: MOH Cost Allocation Base: Direct Labor Dollars Cost Driver Rate: 2.25 m_tt₩RATE
Expert Answer
| Cost of Goods manufactured Schedule | |||
| Manufacturing cost] | |||
| Direct Material | |||
| Raw materials inventory, 30 June | 30,000 | ||
| Direct materials purchased during the year | 13,000 | ||
| Direct material avalable (1323000+292300) | 43,000 | ||
| Less:Direct materials inventory, July 31 | 22,000 | ||
| Direct materials used (10000+3000+8000) | 21,000 | ||
| Direct Labor (17000+7200) | 24,200 | ||
| Manufacturing overhed (17000*2.25) | 38250 | ||
| T | |||
| Current material finished Goods | 45,200 | ||
| Work-in-process inventory, June 30 | 12,000 | ||
| Less: Work-in-process inventory, July 31 ob 147 (10000+3000+(3000*2.25)+Job 149 (opening balance 12000+2500+(2500*2.25)) | 39875 | ||
| Cost of Goods manufactured | 17,325 | ||
| As no material is requisition to Job 149 so assumed that opening WIP inventory is for J0b 149 | |||
