1 Raw material Inv.

Jan 1 2021 26,490

Raw material purchased 361,920
Total raw material available for use 388,410
Less: raw material inventory 12/31/2021 -24,910
Direct Material Used 363,500

2 Direct Labor 99,085

Manufacturing overhead
Indirect labor 126,750
Plant supervision 42,500
Factory Insurance 8,100
Factory Utilities 29,220
Depre - Factory Building 46,200
Depre - Factory Equipment 62,800
Manufacturing Supplies 9,460 325,030
Total Manufacturing Cost 787,615

3 Add: Work in Process, beginning 101,640

Total Cost of Goods Placed in Process 889,255
Less: Work in Process, end -100,400
Cost of Goods Manufactured 788,855
1 Amortization of Patents
Depreciation Expense - Factory Building
Depreciation Expense - Factory Equipment
Factory Insurance Expense
Factory Supervision
Factory Supplies Expense
Factory utilities
Indirect Labor
Property Taxes - Factory Site
Repairs and Maintenance - Factory Equipment

2 Amortization of Patents 16,000

Depreciation Expense - Factory Building 133,000
Depreciation Expense - Factory Equipment 78,000
Factory Insurance Expense 62,000
Factory Supervision 74,000
Factory Supplies Expense 21,000
Factory utilities 115,000
Indirect Labor 26,000
Property Taxes - Factory Site 14,000
Repairs and Maintenance - Factory Equipment 31,000
Total Manufacturing overhead cost 570,000

3 Direct Material used

Raw Material Inventory 12/31/2020 60,000
Purchases - Raw Materials 313,000
Total of Raw material available for use 373,000
Less: Raw Material Inventory 12/31/2021 -78,000
Total Direct Material Used 295,000

Direct Labor 250,000

Manufacturing Overhead
Amortization of Patents 16,000
Depreciation Expense - Factory Building 133,000
Depreciation Expense - Factory Equipment 78,000
Factory Insurance Expense 62,000
Factory Supervision 74,000
Factory Supplies Expense 21,000
Factory utilities 115,000
Indirect Labor 26,000
Property Taxes - Factory Site 14,000
Repairs and Maintenance - Factory Equipment 31,000 570,000
Total Manufacturing Cost 1,115,000
Add: Work in Process Beg. 8,000
Total cost of good placed in process 1,123,000
Less: Work In process end. -9,000
 Cost of Goods Manufactured 1,114,000

4 Sales 1,630,000
COGS
Finished Goods Inv Beg. 15,000
Add: COGM 1,114,000
GOGAS 1,129,000
Less: Finished Goods Inv End -12,500
COGS 1,116,500 -1116500
Gross Profit 513,500
OPEX
Advertising Expense 85,000
Uncollectible Accounts Expense 28,000
Depreciation Expense - Office Equipment 37,000
Miscellaneous Expense 55,000
Salaries Expense 150,000 -355,000
Operating Profit 158,500
Finance Cost
Interest Expense -25,000
Profit 133,500
2 Direct Material Used
Raw Materials Inventory 84,600
Add: Purchases - Raw Materials 311,400
Raw Materials Available for use 396,000
Less: Raw Materials Ending Inventory -91,080
Direct Material Used 304,920

Direct Labor Cost 450,000

Manufacturing Overhead Cost
Indirect Labor 194,220
Factory Utilities 109,440
Repairs and Maintenance - FE 30,060
Rent Expense - FB 84,600
Property Taxes - Factory Site 19,260
Factory Insurance Expense 16,020
Factory Supplies Expense 34,920
Depreciation Expense - Factory Equipment 82,800
Amortization of Patents 13,680 585,000
total Manufacturing Cost 1,339,920
Add: Work In Process Inventory Beg. 99,360
Total Cost of Good sold Placed in Process 1,439,280
Less: Work in Process Inventory End. -88,357.50
Cost of Goods Manufactured 1,350,922.50

3 To close manufacturing accounts with debit credit balances

Raw Materials Inventory, End 91,080
Work In process Inventory, End 88,357.50
Manufacturing Summary

To close Manufacturing accounts with debit balances

Manufacturing Summary 1,530,360
Raw Materials Inventory Beginning
Work in Process Inventory Beginning
Purchases Raw Material
Direct Labor Cost
Indirect Labor
Factory Utilities
Repairs and Maintenance - FE
Rent Expense - FB
Property Taxes - Factory Site
Factory Insurance Expense
Factory Supplies Expense
Depreciation Expense - Factory Equipment
Amortization of Patents
To close manufacturing summary and beginning finished goods inventory to income summary
Income Summary 1,350,922.50
Manufacturing Summary 1,350,922.50
 1 Overhead Rate = Direct Labor Cost/Total Manufacturing Overhead
= 450,000/585,000
= 0.77 or 77%

Work In process Inventory End =4,500 x 18 = 81,000

= 4,500 x 7.50 = 33,750
= 114750 x 77%
= 88,357.50

179,437.50

84,600
99,360
311,400
450,000
194,220
109,440
30,060
84,600
19,260
16,020
34,920
82,800
13,680
o income summary