North Pacific Company used $65,000 of direct materials and incurred $43,000 of direct labor costs during the most recent year. Indirect labor amounted to $1,700 while indirect materials used totaled $1,800. Other operating costs pertaining to the factory included utilities of $4,300; maintenance of $6,800; supplies of $1,500; depreciation expense of $8,900; and property taxes of $2,400. There was no beginning or ending finished goods inventory, but work in process inventory began the year with a $6,400 balance and ended the year with a $7,800 balance.
Required: Prepare a schedule of cost of goods manufactured for North Pacific Company for the year ended December 31.

Question

Quizplus · Accepted Answer

The Answer of North Pacific Company used $65,000 of direct materials and incurred $43,000 of direct labor costs during the most recent year. Indirect labor amounted to $1,700 while indirect materials used totaled $1,800. Other operating costs pertaining to the factory included utilities of $4,300; maintenance of $6,800; supplies of $1,500; depreciation expense of $8,900; and property taxes of $2,400. There was no beginning or ending finished goods inventory, but work in process inventory began the year with a $6,400 balance and ended the year with a $7,800 balance.
Required: Prepare a schedule of cost of goods manufactured for North Pacific Company for the year ended December 31.

North Pacific Company Used $65,000 of Direct Materials and Incurred