Messinger Manufacturing Company had the following account balances for the quarter ending March 31, unless otherwise noted:

Work-in-process inventory (January 1) $140,400
Work-in-process inventory (March 31) 171,000
Finished goods inventory (January 1) 540,000
Finished goods inventory (March 31) 510,000

Direct materials used 378,000
Indirect materials used 84,000
Direct manufacturing labor 480,000
Indirect manufacturing labor 186,000

Property taxes on manufacturing plant building 28,800
Salespersons' company vehicle costs 12,000
Depreciation of manufacturing equipment 264,000
Depreciation of office equipment 123,600

Miscellaneous plant overhead 135,000
Plant utilities 92,400
General office expenses 305,400
Marketing distribution costs 30,000

Required:
a. Prepare a cost of goods manufactured schedule for the quarter.
b. Prepare a cost of goods sold schedule for the quarter.

Hi, thanks for your help, I would like to know if I have to include "Miscellanous Plant Overhead in the "Factory Overhead", I amm a little confused with it. Thanks again for your help.
William

Quote:

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Originally Posted by muslimrao

Hi.

Please check attached ANSWER for your perusal...

http://img227.imageshack.us/img227/2...cument3fc7.gif

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Ya exactly you have to ADD in FACTORY OVERHEAD.

- Plant overhead is allocated to FACTORY OVERHEAD and will take it in COST OF GOODS MANUFACTURED.

- Machinery or Equipment overhead will considered as a OPERATING EXPENSE and will take in INCOME STATEMENT.

What is the meaning of the term cost object? Give an example of a cost object that would be used in a manufacturing compan y, a merchandising company, and a service sector company?

What is the meaning of the term cost object? Give an example of a cost object that would be used in a manufacturing company, a merchadising company, and a service sector company?

This is my first accounting class and I really don't understand it. I need help. Please give me an example of a cost object that would be used in a manufacturing company, a merchandising company and a service sector company.

Sorry for being delay but... I still confused about your above question.

If you are a beginer than please do search out on Google the basic cost accounts notes.

THIS FORUM IS FOR YOUR HOMEWORK HELP.

If I'm wrong in writing above reply than please make it right by clarfying what do you exactly want.. I can't understand COST OBJECT :S.. Please CLARIFY.

I have this exact problem for homework and have no idea where to start. So lost.

a. Prepare a cost of goods manufactured schedule for the quarter.

Messinger Manufacturing Company
Cost of Goods Manufactured Schedule
For quarter ending March 31

Particulars Amount

Direct materials used $ 378,000
Direct manufacturing labor $480,000
Manufacturing overhead
Depreciation of manufacturing equipment $264,000
Indirect manufacturing labor $186,000
Indirect materials $84,000
Miscellaneous plant overhead $135,000
Plant utilities $92,400
Property taxes on building 28,800 $790,200
Manufacturing costs incurred $1,648,200
Add: Beginning work-in-process inventory $140,400
Total manufacturing costs $1,788,600
Less ending work-in-process inventory $171,000
Cost of goods manufactured $1,617,600













b. Prepare a cost of goods sold schedule for the quarter


Messinger Manufacturing Company
Cost of Goods Sold Schedule
For the quarter ending March 31


Beginning finished goods inventory $ 540,000
Cost of goods manufactured $1,617,600
Cost of goods available for sale $2,157,600
Ending finished goods inventory $(510,000)
Cost of goods sold $1,647,600