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.)