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Schedule of Cost of Goods Manufactured

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.