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    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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    https://brainmass.com/business/inventory-management/137140

    Solution Preview

    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 ...

    Solution Summary

    The solution explains how to prepare a manufacturing statement

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