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Farside Manufacturing Company Statement of Cost of Goods Manufactured For The Year Ended December 31 Direct Materials Used

Farside Manufacturing Company incurred $1,130,000 in total manufacturing costs for the year ended December 31. This was comprised of $490,000 in direct materials used, $380,000 in direct labor, and $260,000 in manufacturing overhead. After adjusting for changes in work in process inventory, the cost of goods manufactured was $1,100,000. For the full year, Farside had sales of $1,800,000 and cost of goods sold of $1,090,000, resulting in a gross margin of $710,000 and income from operations of $210,000 after deducting $500,000 in operating expenses.

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258 views3 pages

Farside Manufacturing Company Statement of Cost of Goods Manufactured For The Year Ended December 31 Direct Materials Used

Farside Manufacturing Company incurred $1,130,000 in total manufacturing costs for the year ended December 31. This was comprised of $490,000 in direct materials used, $380,000 in direct labor, and $260,000 in manufacturing overhead. After adjusting for changes in work in process inventory, the cost of goods manufactured was $1,100,000. For the full year, Farside had sales of $1,800,000 and cost of goods sold of $1,090,000, resulting in a gross margin of $710,000 and income from operations of $210,000 after deducting $500,000 in operating expenses.

Uploaded by

Jane Villanueva
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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MANUFACTURING

Farside Manufacturing Company


Statement of cost of goods manufactured
For the year ended December 31

Direct Materials Used:


Raw Materials inventory, January 1 40,000
Raw Materials purchases 480,000
Less: Raw Materials inventory, December 31 30,000
Raw Materials used 490,000
Less: Indirect Materials Used 0
Direct Materials Used 490,000
Direct labor 380,000
Manufacturing overhead:
Indirect labor 120,000
Maintenance and repairs expense 60,000
Factory utilities expense 10,000
Depreciation expense – factory building 20,000
Depreciation expense – factory equipment 30,000
Other expense – factory 20,000
Total manufacturing overhead 260,000
Total Manufacturing Cost 1,130,000
Add: Work in process inventory, January 1 30,000
Less: Work in process inventory, December 31 -60,000
Cost of goods manufactured 1,100,000
Farside Manufacturing Company
Income statement
For the year ended December 31

Sales
Cost of goods sold:
Finished goods inventory, January 1
Cost of goods manufactured
Cost of goods available for sale
Less: Finished goods inventory, December 31
Cost of goods sold
Gross margin (Sales – Cost of goods sold)
Operating expenses:
Selling expenses
Administrative expenses
Total operating expenses
Income from operations
Manufacturing Company
me statement
ar ended December 31

1,800,000

50,000
1,100,000
$1,150,000
60,000
1,090,000
710,000

300,000
200,000
500,000
210,000

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