Statement of cost of goods

Statement of Cost of Goods

   

Manufactured from Percent Relationships

   

Information about NuWay Products Company for the year ending December 31, 2010, follows:

         

* Sales equal $550,000.

     

* Direct materials used total $70,000.

   

* Manufacturing overhead is 150 percent of direct labor dollars.

* The beginning inventory of finished goods is 20 percent of the cost of goods sold.

* The ending inventory of finished goods is twice the beginning inventory.

* The gross profit is 20 percent of sales.

   

* There is no beginning or ending work-in-process.

             

Prepare a statement of cost of goods manufactured for 2010. (Hint: Prepare an analysis of

changes in Finished Goods Inventory.)

   
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