Consider the following account balances (in thousands) for the Alderman Company:
(Click the icon to view the account balances.)
Requirements
1. Prepare a schedule for the cost of goods manufactured for 2017.
2. Revenues for 2017 were $265 million. Prepare the income statement for 2017.
Requirement 1. Prepare a schedule for the cost of goods manufactured for 2017.
Begin by preparing the schedule of cost of goods manufactured (in thousands). Start with the direct materials and labor costs, then indirect manufacturing costs, and complete the schedule by calculating cost of goods manufactured.
Alderman Company
Schedule of Cost of Goods Manufactured
For the Year Ended December 31, 2017 (in thousands)
Direct materials:
Direct materials used
Direct manufacturing labor
Data table
Alderman Company
Beginning of End of
2017
2017
Direct materials inventory
25,000 27,000
Work-in-process inventory
22,000 20,000
Finished-goods inventory
17,000 29,000
Purchases of direct materials
76,000
Direct manufacturing labor
28,000
Indirect manufacturing labor
18,000
Plant insurance
9.000
Depreciation-plant, building, and equipment
15,000
Repairs and maintenance-plant
3,000
Marketing, distribution, and customer-service costs
96,000
General and administrative costs
38,000