2023 Statement of Cost of Goods Manufactured from Percent Relationships Information about NuWay Products Company for the year | Assignments Online

Statement of Cost of Goods

Manufactured from Percent Relationships

Information about NuWay Products Company for the year ending December 31, 2010, follows:

* Sales equal $550,000.

* Direct materials used total $70,000.

* Manufacturing overhead is 150 percent of direct labor dollars.

* The beginning inventory of finished goods is 20 percent of the cost of goods sold.

* The ending inventory of finished goods is twice the beginning inventory.

* The gross profit is 20 percent of sales.

* There is no beginning or ending work-in-process.

Prepare a statement of cost of goods manufactured for 2010. (Hint: Prepare an analysis of

changes in Finished Goods Inventory.)

NuWay Products Company

Statement of Cost of Goods Manufactured

For the Year Ending December 31, 2010

Current manufacturing costs:

Direct Materials

 $      70,000

Direct Labor

Manufacturing overhead

Beginning work in process

 $                    –

Total costs in process

Ending work in process

 $                    –

Cost of goods manufactured

Analysis of Finished Goods Inventory

Finish goods, 1/1/10

Total goods available for sale

Finish goods, 12/31/10

Cost of goods sold