Please review my 1st attempt of preparing a schedule of cost of good based upon provided information. I am not sure of if my selections for the various costings are correct, .i.e. Advertising cost, Salaries and depreciation. Are these types of costs considered indirect manufacturing overhead?
Please review cost selection for accuracy and explain your answer.
Total raw materials available 125000
Deduct: Raw materials inventory, ending -15000
Raw materials used in production 110000
Deduct: Indirect materials including in manufacturing -143000
Direct Labor 70000
Manufacturing overhead applied to work in progress 80000
Total manufacturing costs 117000
Add: Beginning work in process inventory 10000
Deduct: Ending work in process inventory -5000
Cost of goods manufactured 122000
The solution explains how to prepare a Schedule of Cost of Goods Manufactured.