BA511-L1A4 - Student Name Class MEDCO INC Schedule of Cost...

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Student Name: Class: MEDCO, INC. Schedule of Cost of Goods Manufactured Direct materials: Raw materials inventory, beginning $10,000 Add: Purchases of raw materials 90,000 Raw materials available for use 100,000 Deduct: Raw materials inventory, ending 17,000 Raw materials used in production $83,000 Direct labor 60,000 Manufacturing overhead: Depreciation, factory 42,000 Insurance, factory 5,000 Maintenance, factory 30,000 Utilities, factory 27,000 Supplies, factory 1,000 Indirect labor 65,000 Total overhead costs 170,000 Total manufacturing costs 313,000 Add: Work in process inventory, beginning 7,000 320,000 Deduct: Work in process inventory, ending 30,000 Cost of goods manufactured $290,000 MEDCO, INC. Income Statement Sales $450,000 Cost of goods sold: Finished goods inventory, beginning $10,000 Add: Cost of goods manufactured 290,000 Goods available for sale 300,000 Finished goods inventory, ending 40,000 260,000 Gross margin 190,000 Less operating expenses: Selling expenses 80,000 Administrative expenses 70,000 150,000 Net operating income $40,000 3. Equivalent units of product produced 10,000 Average cost per unit for direct materials $8.30
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