Ferrell,Inc

question 91

Essay

Ferrell,Inc.used $213,000 of direct materials and incurred $111,000 of direct labor costs during the year.Indirect labor amounted to $8,100,while indirect materials used totaled $4,800.Other operating costs pertaining to the factory included utilities of $9,300; maintenance of $13,500; repairs of $5,400; depreciation of $23,700; and property taxes of $7,800.There was no beginning or ending finished goods inventory.The Work-in-Process Inventory account reflected a balance of $16,500 at the beginning of the period and $22,500 at the end of the period.
Required: Prepare a schedule of cost of goods manufactured for Ferrell,Inc.using the format below.
Cost of Goods Manufactured
$$\begin{array} { | l | l | l | l | } \hline \text { Beginning Work-in-Process Inventory } & \quad\quad&\quad\quad & \quad\quad\\\hline \text { Direct Materials Used } & & & \\\hline \text { Direct Labor } & & & \\\hline \text { Manufacturing Overhead: } & & & \\\hline \text { Indirect Labor Used } & & & \\\hline \text { Indirect Materials } & & & \\\hline \text { Utilities } & & & \\\hline \text { Maintenance } & & & \\\hline \text { Repairs } & & & \\\hline \text { Depreciation } & & & \\\hline \text { Property Taxes } & & & \\\hline \text { Total Manufacturing Overhead } & & & \\\hline \begin{array} { l } \text { Total Manufacturing Costs Incurred } \\\text { during the Year }\end{array} & & & \\\hline \begin{array} { l } \text { Total Manufacturing Costs to Account } \\\text {for}\\\hline\text { Ending Work-in-Process Inventory }\end{array} & & & \\\hline \text { Cost of Goods Manufactured } & & & \\\hline\end{array}$$

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Definitions:

Packaging Materials

Materials used to wrap or protect goods for distribution, storage, sale, and use.

Product Life Cycle

The stages through which a product goes from its introduction to the market, growth in sales, maturity, and eventual decline.

Marketing Strategies

Plans of action designed to promote and sell products or services, involving market analysis and focusing on the optimal product mix to achieve maximum profit potential.

Environmental Concerns

Issues related to the protection of the environment, including pollution, natural resource depletion, and climate change impacts.