Question:
1. Fayetteville Manufacturing Co. produces only one product. You have obtained the following information from the corporation's books and records for the year ended December 31, 2011:
a. Total manufacturing cost during the year was $1,000,000, including direct materials, direct labor, and factory overhead.
b. Cost of goods manufactured during the year was $970,000.
c. Factory overhead charged to work in process was 75% of direct labor cost and 27% of the total manufacturing cost.
d. The beginning work in process inventory, January 1, was 40% of the ending work in process inventory, December 31.
Required:
Prepare a statement of cost of goods manufactured for the year ended December 31 for Fayetteville Manufacturing.