PROBLEM 3

Mabdelon Lee Company

Cost of Goods Manufactured

Direct Materials Used

Raw Materials Inventory. Beg. 84,600.00
Add: Net Cost of Purchases
Purchases Raw Materials 311,400.00
Raw Materials Available for Used 396,000.00
Less: Raw Materials Inventory. End. 91,080.00
Total Direct Materials Used 304,920.00

Direct Labor 450,000.00

Manufacturing Overhead
Indirect Labor 194,220.00
Dep. Expense. Fac. Equipment 82,800.00
Factory Insurance Expense 16,020.00
Rent Expense Factory Building 84,600.00
Factory Supplies Expense 34,920.00
Factory Utilities 109,440.00
Property Taxes-Factory Site 19,260.00
Amortization Patent 13,680.00
Repair& Maintenance 30,060.00 585,000.00
Total Manufacturing Cost 1,339,920.00
Add: Work in Process. Beg. 99,360.00
Total Cost of Goods Placed in Process 1,439,280.00
Less:Work in Process. End. 1,324,530.00
Cost of Goods Manufactured 114,750.00
 PROBLEM 3

General Journal
Date Accounts Title and Explanation P.R. Debit Credit

Raw Materials Inventory. End. 91,080.00

Work in Process. End. 1,324,530.00
Manufacturing Summary 1,415,610.00

Manufacturing Summary 1,530,360.00

Raw Materials Inventory. Beg. 84,600.00
Work in Process. Beg. 99,360.00
Purchases Raw Materials 311,400.00
Direct Labor 450,000.00
Indirect Labor 194,220.00
Dep. Expense. Fac. Equipment 82,800.00
Factory Insurance Expense 16,020.00
Rent Expense Factory Building 84,600.00
Factory Supplies Expense 34,920.00
Factory Utilities 109,440.00
Property Taxes-Factory Site 19,260.00
Amortization Patent 13,680.00
Repair& Maintenance 30,060.00

Income Summary
Manufacturing Summary 114,750.00
Finished Goods Inventory,Beg. 114,750.00

Finished Goods Inventory,End.

Income Summary

TOTAL 2,945,970.00 3,175,470.00

Raw Materials, End (initial) 91,080.00
Material Used (4500 units X 18) 81,000.00
Raw Materials, End 10,080.00

Direct Labor (initial) 450,000.00

Add:Direct labor (4500 units X 7.50) 33,750.00
Direct Labor 483,750.00

Work in Process, End

Work in Process, Beg. 99,360.00

Material Used (4500 units X 18) 81,000.00

Add:Direct labor (4500 units X 7.50) 33,750.00
Cost of Goods Manufactured 114,750.00
 PROBLEM 3

Direct Materials Used

Raw Materials Inventory. Beg. 84,600.00
Add: Net Cost of Purchases
Purchases Raw Materials 311,400.00
Raw Materials Available for Used 396,000.00
Less: Raw Materials Inventory. End. 10,080.00
Total Direct Materials Used 385,920.00

Direct Labor 483,750.00

Manufacturing Overhead
Indirect Labor 194,220.00
Dep. Expense. Fac. Equipment 82,800.00
Factory Insurance Expense 16,020.00
Rent Expense Factory Building 84,600.00
Factory Supplies Expense 34,920.00
Factory Utilities 109,440.00
Property Taxes-Factory Site 19,260.00
Amortization Patent 13,680.00
Repair& Maintenance 30,060.00 585,000.00
Total Manufacturing Cost 1,454,670.00
Add: Work in Process. Beg. 99,360.00
Total Cost of Goods Placed in Process 1,554,030.00
Less:Work in Process. End. 1,439,280.00
Cost of Goods Manufactured 114,750.00
 PROBLEM 3

General Journal
Date Accounts Title and Explanation P.R. Debit Credit

Raw Materials Inventory. End. 10,080.00

Work in Process. End. 1,439,280.00
Manufacturing Summary 1,449,360.00

Manufacturing Summary 1,530,360.00

Raw Materials Inventory. Beg. 84,600.00
Work in Process. Beg. 99,360.00
Purchases Raw Materials 311,400.00
Direct Labor 450,000.00
Indirect Labor 194,220.00
Dep. Expense. Fac. Equipment 82,800.00
Factory Insurance Expense 16,020.00
Rent Expense Factory Building 84,600.00
Factory Supplies Expense 34,920.00
Factory Utilities 109,440.00
Property Taxes-Factory Site 19,260.00
Amortization Patent 13,680.00
Repair& Maintenance 30,060.00

Income Summary
Manufacturing Summary 114,750.00
Finished Goods Inventory,Beg. 114,750.00

Finished Goods Inventory,End.

Income Summary

TOTAL 2,979,720.00 3,209,220.00