During June, Argon, Inc., purchases of direct materials totaled $119,000; direct labor for the month was 3,400 hours at $10.00 per hour. Agron also incurred the following overhead costs: utilities, $5,870; supervision, $17,300; indirect materials, $6,750; depreciation, $6,200; insurance, $1,830; and miscellaneous, $1,100. Beginning inventory accounts were as follows: Materials Inventory, $48,600; Work in Process Inventory, $55,250; and finished Goods Inventory, $38,500. Ending inventory accounts were as follows: Materials Inventory, $55,100; Work in Process Inventory, $48,400; and Finished Goods Inventory, $37,450. Prepare a statement of cost of goods manufactured. show your work. Solution Schedule of Cost of Goods Manufactured .

1. During June, Argon, Inc., purchases of direct materials totaled $119,000; direct labor for the
month was 3,400 hours at $10.00 per hour. Agron also incurred the following overhead costs:
utilities, $5,870; supervision, $17,300; indirect materials, $6,750; depreciation, $6,200;
insurance, $1,830; and miscellaneous, $1,100. Beginning inventory accounts were as follows:
Materials Inventory, $48,600; Work in Process Inventory, $55,250; and finished Goods
Inventory, $38,500. Ending inventory accounts were as follows: Materials Inventory, $55,100;
Work in Process Inventory, $48,400; and Finished Goods Inventory, $37,450. Prepare a
statement of cost of goods manufactured. show your work.
Solution
Schedule of Cost of Goods Manufactured
Amount($) Amount($)
Direct Materials:
Beginning Raw Material Inventory 48,600
+ Purchase of Raw Material 119,000
Raw Material Available 167,600
- Ending Inventory of Raw Material 55,100
Raw Material Transferred to Production 112,500
Direct Labor 34,000
Factory Overheads
Utilities 5,870
Supervision 17,300
Indirect Materials 6,750
Depreciation 6,200
Insurance 1,830
Miscellaneous 1,100 39,050
Total Manufacturing Cost 185,550
+ Beginning Work in Process 55,250
240,800
- Ending Work in Process 48,400

2. Cost of Goods Manufactured 192,400