Use the Information Below for the Year Ended December 31,20xx,to

question 15

Essay

Use the information below for the year ended December 31,20xx,to prepare the statement of cost of goods manufactured.
$\begin{array}{lr}\text { Inventories } & \text { Beginning } & \text { Ending }\\\text { Materials inventory } & \$ 32,300 & \$ 33,900 \\\text { Work in process inventory } & 40,500 & 41,900 \\\text { Direct materials purchased } & & 158,300 \\\text { Total direct labor costs } & & 231,300 \\\text { Total indirect labor costs } & & 45,200 \\\text { Utilities } && 27,100\\\text { Depreciation } & &36,200 \\\text { Small tools } && 3,100 \\\text { Factory insurance } && 1,800 \\\text { Factory supervision } && 39,500 \\\text { Miscellaneous overhead costs } && 6,200\end{array}$

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Definitions:

Fixed Expenses

Costs that do not change with the level of production or sales activities within a certain range or period.

Variable Expenses

Costs that change in proportion to the level of activity within a business.

Contribution Margin

The amount by which the sales revenue of a product exceeds its variable costs, indicating how much contributes towards covering fixed costs and generating profit.

Break-Even Point

The point at which total costs and total revenues are equal, resulting in no net gain or loss for the business.