Cost data for Disksan Manufacturing Company for the month ended January 31 are as follows: Inventories January 1 January 31 Materials $311,000 $276,000 Work in process 214,400 238,400 Finished goods 163,400 190,000 January 31 Direct labor $560,000 Materials purchased during January 608,000 Factory overhead incurred during January: Indirect labor 60,860 Machinery depreciation 35,000 Heat, light, and power 12,600 Supplies 8,580 Property taxes 8,680 Miscellaneous costs 16,460

Required:

A. Prepare a cost of goods manufactured statement for January. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Less" or "Plus" will automatically appear if it is required. Enter all amounts as positive numbers. Be sure to complete the statement heading.
B. Determine the cost of goods sold for January.

cost of goods manufactured statement for January

Direct Materials                                                    $673,000

Direct labor                                                          $560,000

Indirect labor                                                          $60,860

Machinery depreciation                                        $35,000

Heat, light, and power                                           $12,600

Supplies                                                                   $8,580

Property taxes                                                         $8,680

Miscellaneous costs                                              $16,460

Add Opening Stock in Work In Progress           $214,400

Less Closing Stock in Work In Progress          ($238,400)

Cost of goods manufactured                             $1,351,180

cost of goods sold for January

Opening Stock of Finished Goods                  $163,400

Add Cost of Goods Manufactured                   $1,351,180

Less Closing Stock of Finished Goods           ($190,000)

Cost of goods sold                                          $1,324,580

Explanation:

A. Cost of goods manufactured statement for January.

Material Used in Manufacturing = Opening Inventory of Materials + Purchases of  Materials - Closing Inventory of Materials

                                                     = $311,000 + $608,000 - $276,000

                                                     = $673,000

cost of goods manufactured statement for January

Direct Materials                                                    $673,000

Direct labor                                                          $560,000

Indirect labor                                                          $60,860

Machinery depreciation                                        $35,000

Heat, light, and power                                           $12,600

Supplies                                                                   $8,580

Property taxes                                                         $8,680

Miscellaneous costs                                              $16,460

Add Opening Stock in Work In Progress           $214,400

Less Closing Stock in Work In Progress          ($238,400)

Cost of goods manufactured                             $1,351,180

B. Determine the cost of goods sold for January

Cost of goods sold = Opening Stock of Finished Goods + Cost of Goods Manufactured - Closing Stock of Finished Goods

cost of goods sold for January

Opening Stock of Finished Goods                  $163,400

Add Cost of Goods Manufactured                   $1,351,180

Less Closing Stock of Finished Goods           ($190,000)

Cost of goods sold                                          $1,324,580