Dreams Manufacturing,Inc Required: Prepare a Statement of the Cost of Goods Manufactured

question 135

Essay

Dreams Manufacturing,Inc.provided the following information for the year:
$$\begin{array} { |l | r | } \hline \text { Purchases-Raw Materials } & \$ 270,000 \\\hline \text { Plant Utilities and Insurance } & 202,500 \\\hline \text { Indirect Materials } & 35,250 \\\hline \text { Indirect Labor } & 14,250 \\\hline \text { Ending Balance - Work-in-Process Inventory } & 42,000\\\hline \text { Ending Balance - Raw Materials Inventory } &45,000 \\\hline \text { Direct Labor } & 352,500 \\\hline \text { Depreciation on Factory Plant and Equipment } &18,000 \\\hline \text { Beginning Balance - Work-in-Process Inventory } &18,000 \\\hline \text { Beginning Balance - Raw Materials Inventory } & 63,000 \\\hline\end{array}$$ Required: Prepare a statement of the cost of goods manufactured using the following format:

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Definitions:

Cash Dividends

Distributions of earnings paid to shareholders in the form of cash.

Note Payable

A written promise to pay a specific sum of money, plus interest if applicable, to another party at a future date or on demand.

Net Cash Flow

The difference between a company's cash inflows and cash outflows over a specific period of time.

Bond Interest

The periodic payment that bond issuers make to bondholders, typically as a fixed percentage of the bond's face value.