The Following Information Is for the Bayway Manufacturing Company for November

question 89

Essay

The following information is for the Bayway Manufacturing Company for November.

Inventories	Begining	Ending
Raw material	$17,400	$13,200
Work in process	31,150	28,975
Finished goods	19,200	25,500

Direct Labor (21,000 DLH @ $13)
Raw Material Purchases	$120,000	Insurance-Office	2,570
Indirect Labor	11,200	Office Supplies Expense	900
Factory Supplies Used	350	Insurance-Factory	1,770
Other Expenses:		Depr. Office Equipment	3,500
Depr.-Factory Equipment	17,300	Repair/Maintenance-Factory	7,400

Prepare in good form a Statement of Cost of Goods Manufactured and Statement of Cost of Goods Sold.

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Definitions:

Depreciation

The methodical distribution of the expense of a physical asset throughout its expected lifespan.

Oven

An enclosed compartment, usually part of a stove, used for cooking and baking.

Factory Supplies

Items used in the manufacturing process that are not directly part of the final product, including cleaning supplies, tools, and machinery maintenance materials.

Factory Overhead

All indirect costs associated with the production process, such as utilities, maintenance, and management salaries.