Manufacturing Statment, need to help to make sure I am on track?

Question

Given the following selected account balances of Randa Company, prepare its manufacturing statement

in proper form for the year ended on December 31, 2005. Include a listing of the individual

overhead account balances in this statement.

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,252,000

Raw materials inventory, Dec. 31, 2004 . . . . . . . . . . 39,000

Goods in process inventory, Dec. 31, 2004 . . . . . . . 55,900

Finished goods inventory, Dec. 31, 2004 . . . . . . . . . . 64,750

Raw materials purchases . . . . . . . . . . . . . . . . . . . . . 177,600

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227,000

Factory computer supplies used . . . . . . . . . . . . . . . 19,840

Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,000

Repairs—Factory equipment . . . . . . . . . . . . . . . . . 7,250

Rent cost of factory building . . . . . . . . . . . . . . . . . . 59,000

Advertising expenses . . . . . . . . . . . . . . . . . . . . . . . 96,000

General and administrative expenses . . . . . . . . . . . . 131,300

Raw materials inventory, Dec. 31, 2005 . . . . . . . . . . 44,700

Goods in process inventory, Dec. 31, 2005 . . . . . . . 43,500

Finished goods inventory, Dec. 31, 2005 . . . . . . . . . . 69,300

Answer 1

Statement of Goods Manufactured

Direct Materials

...Beginning raw materials 39,000

...Purchases of raw materials 177,600

...Less ending raw materials (44,700)

...Sub-total $171,900

Direct Labor $227,000

Factory Overhead

...Factory computer supplies used 19,840

...Indirect labor 49,000

...Repairs—Factory equipment 7,250

...Rent cost of factory building 59,000

...Sub-total $135,090

Total manufacturing costs $533,990

Beginning WIP 55,900

Less Ending WIP (43,500)

Cost of goods manufactured $546,390

Profit & Loss Statement

Sales $1,252,000

Less:

COGS

...Beginning Finished Goods 64,750

...Cost of goods mfd 546,390

...Less ending Finished Goods (69,300)

...COGS $541,840

Gross profit $710,160