Schedule of cost of goods manufactured
For the year ended December 31,20×2
Particulars | Amount $ | Amounts $ |
Direct material | ||
Raw material inventory, January 1 | 89,000 | |
Add: Purchase of raw material | 731,000 | |
Raw material available | 820,000 | |
Less: raw material inventory, December 31 | 59,000 | |
Raw material used | 761,000 | |
Direct labor | 474,000 | |
Manufacturing overhead: | ||
Indirect material | 45,000 | |
Indirect labor | 150,000 | |
Depreciation of factory building | 125,000 | |
Depreciation on factory equipment | 60,000 | |
Insurance of factory equipment | 40,000 | |
Utilities for factory | 78,000 | |
Property taxes on factory | 90,000 | |
Total manufacturing overhead | 588,000 | |
Less: under applied manufacturing overhead
($588,000-$580,000) |
8,000 | |
Total manufacturing costs | 1,815,000 | |
Add: work in progress inventory, January 1 | 0 | |
Less: work in progress inventory, December | 40,000 | |
Cost of goods manufactured | 1,775,000 |