Question

Consider the following account balances (in thousands) for the Peterson Company.

Peterson Company Beginning of 2017 End of 2017
Direct materials inventory 21,000 23,000
Work-in-process inventory 26,000 25,000
Finished-goods inventory 13,000 20,000
Purchases of direct materials 74,000
Direct manufacturing labor 22,000
Indirect manufacturing labor 17,000
Plant insurance 7,000
Depreciation - plant, building, and equipment 11,000
Repairs and maintenance - plant 3,000
Marketing, distribution, and customer-service costs 91,000
General and administrative costs 24,000
Requirement

1. Prepare a schedule for the cost of goods manufactured for 2017.

Begin by preparing the schedule of cost of goods manufactured (in thousands).
Start with the direct materials and labor costs, then indirect manufacturing costs, and complete the schedule by calculating the cost of goods manufactured.

Answer 1

Answer:

Cost Of Goods Manufactured                               $ 133,000

Explanation:

Peterson Company

Schedule for the cost of goods manufactured

For 2017

Direct Materials  (opening Inventory)              21,000

Add Purchases                                                      74,000

Less Ending Inventory                                     (23000)

Materials available for Use                               72,000

Add Direct Labor                                               22,000

Factory Overhead

Indirect Manufacturing Labor     17,000

Plant Insurance                           7,000

Depreciation                               11,000

Repairs                                         3000              38,000

                                                                              132,000

Add Opening WIP                                                  26,000

Less Closing WIP                                                    25,000

Cost Of Goods Manufactured                               $ 133,000