Use the Information Below for the Year Ended December 31

question 69

Essay

Use the information below for the year ended December 31, 20xx, to prepare the statement of cost of goods manufactured.
$\begin{array}{lrr}\text { Inventories } & \text { Beginning } & \text { Ending } \\\text { Materials inventory } & \$ 41,000 & \$ 51,000 \\\text { Work in process inventory } & 62,000 & 78,000 \\\text { Direct materials purchased } & & 258,000 \\\text { Total direct labor costs } & & 372,000 \\\text { Total indirect labor costs } & & 67,000 \\\text { Utilities } & & 41,000 \\\text { Depreciation } & &54,000 \\\text { Small tools } & &5,000 \\\text { Factory insurance } & &3,000 \\\text { Factory supervision } & & 66,000 \\\text { Miscellaneous overhead costs } && 11,000\end{array}$

---

Definitions:

Contractual Capacity

The legal ability to enter into a binding contract, typically requiring parties to be of a certain age and sound mind.

Negotiation

The process whereby two or more parties discuss and attempt to reach a mutual agreement on matters of common interest.

Forgery

The act of falsely making or altering a document with the intent to deceive or defraud.

Negotiable Instrument

A document guaranteeing the payment of a specific amount either on demand or at a set time, with the instrument being transferable between parties.