The following information has been extracted from the records of Haver

QUESTION

The following information has been extracted from the records of Haverhill Company:Sales$400,000Purchases of raw materials85,000Indirect labor used in manufacturing10,000Indirect materials used in manufacturing5,000Depreciation of factory equipment10,000Depreciation of factory buildings12,000Depreciation of administrative building31,000Marketing costs25,000Direct labor225,000Raw materials inventory, 1-1-0611,000Raw materials inventory, 12-31-0615,000Work in process, 1-1-0630,000Work in process, 12-31-0620,000Finished goods inventory, 1-1-0650,000Finished goods inventory, 12-31-0640,000Required:Prepare a statement of cost of goods manufactured and the Cost of Goods Sold schedule for the company for the year ending 12/31/06.
Haverhill Company Cost of Goods Manufactured Schedule For the Year Ended December 31, 2006 Direct materials used Raw materials inventory, 1-1-06 $11,000 Add: Purchases of raw materials $85,000 Less: Raw materials inventory, 12-31-06 ($15,000) Total raw materials used $81,000 Direct labor $225,000 Manufacturing overhead: Indirect materials used in manufacturing $5,000 Indirect labor used in manufacturing $10,000 Depreciation of factory equipment $10,000 Depreciation of factory buildings $12,000 Depreciation of administrative building $31,000 Total manufacturing overhead $68,000¦

tal manufacturing costs $374,000 Add: Work in process, 1-1-06 $30,000 Less: Work in process, 12-31-06 ($20,000) Cost of goods manufactured $384,000 Haverhill Company Cost of Goods Sold Schedule For the Year Ended December 31, 2006 Cost of goods manufactured $384,000 Add: Finished goods inventory, 1-1-06 $50,000 Less: Finished goods inventory, 12-31-06 ($40,000) Cost of goods sold $394,000

ANSWER:

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