[shihtzuma]

I am trying to create a schedule of cost of goods manufactured, but the problem doesn't give me the beginning inventory or the purchase amount for the direct materials. The only two items it gives me related to direct materials is the direct materials used ($378,000), and indirect materials used ($84,000). My question is, how do I start preparing the schedule without the beginning inventory or the purchase amount for the direct materials?:confused:

[morgaine300]

You've got a formula stuck in your head. The cost of the goods is going to come from what has been used, and they gave you those figures. The cost of goods doesn't consist of anything they haven't used, nor do you need those numbers to calculate used if they already gave it to you. (Just keep in mind that indirect is overhead.)