Question

This is the first problem in a sequence of problems for Piedmont Computer Company, a manufacturer of personal computers and tablets. During its first month of manufacturing, Piedmont Computer Company incurred the following manufacturing costs:

Balances: Beginning Ending

Direct Materials \( 10,500 \) 9,700

Work-in-Process Inventory 0 17,000

Finished Goods Inventory 0 31,000

Other information:

Direct materials purchases $ 16,000

Plant janitorial services 500

Sales salaries expense 10,000

Delivery expense 1,600

Sales revenue 1,100,000

Utilities for plant 16,000

Rent on plant 9,000

Customer service hotline costs 19,000

Direct labor 210,000

Prepare a schedule of cost of goods manufactured for Piedmont Computer Company for the month ended January 31, 2020.

Short answer

The cost of goods manufactured is $235,300.

Step-by-step solution

Step-by-Step SolutionStep 1: Definition of direct materials

The direct materials are defined as the raw materials which are used in the production process directly by the company.

Preparation of schedule of cost of goods manufactured

Piedmont Computer Company
Schedule of cost of goods manufactured
Month Ended January 31, 2020
	Amount ($)	Amount ($)	Amount ($)
Beginning WIP Inventory			$0
Direct Material Used:
Beginning Direct Materials	$10,500
Purchases of direct material	16,000
Direct Materials Available for use	26,500
Ending Direct Materials	-9,700
Direct Material Used		16,800
Direct Labor		210,000
Manufacturing Overhead
Plant Janitorial Services	500
Utilities For plant	16,000
Rent on plant	9,000
Total manufacturing Overhead		25,500
Total manufacturing cost incurred during month			252,300
Total manufacturing cost to account for			252,300
Ending WIP Inventory			-17,000
Cost of goods manufactured			$235,300