Cost Of Goods Manufactured Stats
Cost Of Goods Manufactured Sta
Assignment isdue on 4/16/2016 Option #2: Cost of Goods Manufactured Statement Denny Corporation, a manufacturing company, produces a single product. The following information has been taken from the company’s production, sales, and cost records for the year just completed: Production in units 51,000 Direct labor $120,325 Raw materials purchased $325,019 Manufacturing overhead $250,265 Selling and administrative expenses $422,100 Raw Materials, Beginning $62,900 Raw Materials, Ending $45,345 Work in Process, Beginning $52,984 Work in Process, Ending $58,777 Instructions Prepare the cost of goods manufactured statement. Provide your answers in a clearly organized Excel spreadsheet. Check spelling and formatting for readability. All responses must comply with APA , Be sure to review the Module 2 Critical Thinking grading rubric, which may be accessed through the Course Information page. Your assignment should meet the following requirements 2-3 pages in length, including calculations and title sheet Document your sources
Paper For Above instruction
The Cost of Goods Manufactured (COGM) statement provides a detailed account of the total production costs incurred during a specific period and the value of goods completed. For Denny Corporation, constructing this statement involves compiling data on raw materials, direct labor, manufacturing overhead, and work-in-process inventories. This paper presents the step-by-step calculations necessary to prepare the COGM statement, ensuring clarity, readability, and adherence to APA formatting standards.
Calculation of Raw Materials Used
The raw materials used in production are computed by adjusting the beginning and ending raw materials inventories with raw materials purchased within the period. The formula is:
Raw Materials Used = Raw Materials Beginning + Raw Materials Purchased - Raw Materials Ending
Using the given data:
Raw Materials Used = $62,900 + $325,019 - $45,345 = $342,574
This figure represents the total raw materials consumed during the period for manufacturing.
Calculation of Direct Labor and Manufacturing Overhead
Direct labor costs and manufacturing overhead are direct costs attributable to production. The provided figures are:
- Direct Labor = $120,325
- Manufacturing Overhead = $250,265
Calculating Total Manufacturing Costs
Total manufacturing costs encompass direct materials used, direct labor, and manufacturing overhead:
Total Manufacturing Costs = Raw Materials Used + Direct Labor + Manufacturing Overhead
Total Manufacturing Costs = $342,574 + $120,325 + $250,265 = $713,164
Work-in-Process (WIP) Inventory Adjustment
The beginning and ending WIP inventories are used to determine the cost of goods manufactured:
WIP Inventory, Beginning = $52,984
WIP Inventory, Ending = $58,777
Calculation of Cost of Goods Manufactured
The formula to compute COGM is:
COGM = Total Manufacturing Costs + Beginning WIP Inventory - Ending WIP Inventory
Applying the data:
COGM = $713,164 + $52,984 - $58,777 = $707,371
Summary and Conclusion
The computed Cost of Goods Manufactured for Denny Corporation is $707,371. This figure reflects the total cost of goods completed during the period, accounting for all production costs and changes in work-in-process inventory. Preparing this statement provides valuable insights into manufacturing efficiency and cost management, aiding managerial decision-making.
Formatting and Readability
The calculations are organized systematically to facilitate understanding and review. Tables can be incorporated into the Excel spreadsheet to enhance clarity, with labeled columns for each component of cost calculation. Proper APA formatting should be observed throughout, including citations of sources and consistent font and spacing.
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