Manufacturing Statement Preparation
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Given the following selected account balances of Randa Company, prepare its manufacturing statement in proper form for the year ended on December 31, 2005. Include a listing of the individual overhead account balances in this statement.
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,252,000
Raw materials inventory, Dec. 31, 2004 . . . . . . . . . . . 39,000
Goods in process inventory, Dec. 31, 2004 . . . . . . . 55,900
Finished goods inventory, Dec. 31, 2004 . . . . . . . . . . 64,750
Raw materials purchases . . . . . . . . . . . . . . . . . . . . . 177,600
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227,000
Factory computer supplies used . . . . . . . . . . . . . . . 19,840
Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,000
Repairs?Factory equipment . . . . . . . . . . . . . . . . . 7,250
Rent cost of factory building . . . . . . . . . . . . . . . . . . 59,000
Advertising expenses . . . . . . . . . . . . . . . . . . . . . . . 96,000
General and administrative expenses . . . . . . . . . . . . 131,300
Raw materials inventory, Dec. 31, 2005 . . . . . . . . . . 44,700
Goods in process inventory, Dec. 31, 2005 . . . . . . . 43,500
Finished goods inventory, Dec. 31, 2005 . . . . . . . . . . 69,300
Here is a sample of what I am looking for. This has nothing to do with the problem above other then this is an example of a manufacturing statment. Thanks.
ROCKY MOUNTAIN BIKES
Manufacturing Statement
For Year Ended December 31, 2005
Direct materials
Raw materials inventory, Dec. 31, 2004 . . . . . . . . . . . . $ 8,000
Raw materials purchases . . . . . . . . . . . . . . . . . . . . . . 86,500
Raw materials available for use . . . . . . . . . . . . . . . . . 94,500
Less raw materials inventory, Dec. 31, 2005 . . . . . . . . 9,000
Direct materials used . . . . . . . . . . . . . . . . . . . . . . . . $ 85,500
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000
Factory overhead
Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000
Factory supervision . . . . . . . . . . . . . . . . . . . . . . . . . 6,000
Factory utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,600
Repairs?Factory equipment . . . . . . . . . . . . . . . . . . . 2,500
Property taxes?Factory building . . . . . . . . . . . . . . . 1,900
Factory supplies used . . . . . . . . . . . . . . . . . . . . . . . . 600
Factory insurance expired . . . . . . . . . . . . . . . . . . . . . 1,100
Small tools written off . . . . . . . . . . . . . . . . . . . . . . . 200
Depreciation expense?Factory equipment . . . . . . . . 3,500
Depreciation expense?Factory building . . . . . . . . . . 1,800
Amortization expense?Patents . . . . . . . . . . . . . . . . 800
Total factory overhead . . . . . . . . . . . . . . . . . . . . . . . 30,000
Total manufacturing costs . . . . . . . . . . . . . . . . . . . . . . . 175,500
Add goods in process inventory, Dec. 31, 2004 . . . . . . . . 2,500
Total cost of goods in process . . . . . . . . . . . . . . . . . . . 178,000
Less goods in process inventory, Dec. 31, 2005 . . . . . . . 7,500
Cost of goods manufactured . . . . . . . . . . . . . . . . . . $170,500
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Solution Summary
The solution explains how to prepare a manufacturing statement
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In making the manufacturing statement, we take into account the manufacturing costs. Direct Material and Direct Labor separate and rest of the manufacturing cost is put as overhead.
Advertising expense and general and administrative expense is not manufacturing cost and is excluded.
RANDA ...
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