An incomplete cost of goods manufactured schedule is presented below. Complete the cost of goods manufactured schedule for Hobbit Company. HOBBIT COMPANY Cost of Goods Manufactured Schedule Work in process (1/1) $216,680 Direct materials Raw materials inventory (1/1) $ Add: Raw materials purchases 159,060 Total raw materials available for use Less: Raw materials inventory (12/31) 29,230 Direct materials used $183,850 Direct labor Manufacturing overhead Indirect labor 26,160 Factory depreciation 40,720 Factory utilities 73,100 Total overhead 139,980 Total manufacturing costs Total cost of work in process Less: Work in process (12/31) 84,720 Cost of goods manufactured $546,610

The completion of the Cost of Goods Manufactured Schedule is as follows:

Cost of Goods Manufactured Schedule

Work in process (1/1)                    $216,680

Direct materials                              183,850

Direct labor                                     90,920

Manufacturing overhead              139,980

Total manufacturing costs       $631,330

Less: Work in process (12/31)        84,720

Cost of goods manufactured $546,610

Data and Calculations:

Raw materials inventory:

Raw materials inventory (1/1)                 $54,020

Add: Raw materials purchases             159,060

Total raw materials available for use $213,080

Less: Raw materials inventory (12/31)    29,230

Direct materials used                         $183,850

Total raw materials available for use = $213,080 ($29,230 + $183,850)

Raw materials inventory at January 1 = $54,020 ($213,080 - $159,060)

Manufacturing overhead

Indirect labor                            26,160

Factory depreciation                40,720

Factory utilities                          73,100

Total overhead                      139,980

Total manufacturing costs:

The total cost of work in process $631,330

Less: Work in process (12/31)           84,720

Cost of goods manufactured       $546,610

Total cost of work in process = $631,330 ($546,610 + $84,720)

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HOBBIT COMPANY

Cost of Goods Manufactured Schedule

Direct materials Raw materials inventory (1/1) $ 54020

Add: Raw materials purchases 159,060

Total raw materials available for use 213080

Less: Raw materials inventory (12/31) 29,230

Direct materials used $183,850

Direct labor $ 90820

Manufacturing overhead  139,980

Indirect labor 26,160

Factory depreciation 40,720

Factory utilities 73,100

Total overhead 139,980

Total manufacturing costs $414650

Work in process (1/1) $216,680

Total cost of work in process $ 631330

Less: Work in process (12/31) 84,720

Cost of goods manufactured $546,610

Explanation:

HOBBIT COMPANY

Cost of Goods Manufactured Schedule

Direct materials Raw materials inventory (1/1) $ 54020

Add: Raw materials purchases 159,060

Total raw materials available for use 213080

Less: Raw materials inventory (12/31) 29,230

Direct materials used $183,850

STEP 1) Using the direct materials used figure we move upwards to calculate the missing figures  doing reverse calculations.

Direct materials used + Raw materials inventory =Total raw materials available for use

Total raw materials available for use =$183,850 +29,230 =213080

Total raw materials available for use -Raw materials purchases=Direct materials Raw materials inventory

Direct materials Raw materials inventory=213080- 159,060 = 54020

Direct materials used $183,850

Direct labor $ 90820

Manufacturing overhead  139,980

Indirect labor 26,160

Factory depreciation 40,720

Factory utilities 73,100

Total overhead 139,980

Total manufacturing costs $414650

Work in process (1/1) $216,680

Total cost of work in process $ 631330

Less: Work in process (12/31) 84,720

Cost of goods manufactured $546,610

STEP 2) Moving backwards from the Cost of goods manufactured figure we find the Total cost of work in process  doing reverse calculations

Cost of goods manufactured $546,610 + Work in process (12/31) 84,720 =Total cost of work in process

Total cost of work in process =$546,610 + 84,720 = $ 631330

STEP 3) Then we find the total manufacturing Cost .

Total cost of work in process Less Work in process (1/1) $216,680 =Total manufacturing costs

Total manufacturing costs =$ 631330-$216,680 = $414650

STEP 4) From the Total manufacturing costs we find the Direct labor using the following

Direct labor =Total manufacturing costs-Manufacturing overhead  139,980-Direct materials used $183,850

Direct labor = $414650-139,980- $183,850 = $ 90820

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