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    Schedule of Cost of Goods Manufactured

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    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.

    Direct materials:
    Raw materials inventory, beginning 7000
    Add: Purchases of raw materials 118000

    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

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    Solution Summary

    The solution explains how to prepare a Schedule of Cost of Goods Manufactured.