Problem - Statement of Cost of Goods Manufactured
Dillo Vineyards, a large winery in Texas, produces a full line of varietal wines. The company, whose fiscal year begins on November 1, has just completed a record-breaking year. Its inventory account balances on October 31 of this year were Materials Inventory, $1,803,800; Work in Process Inventory, $2,764,500; and Finished Goods Inventory, $1,883,200. At the beginning of the year, the inventory account balances were Materials Inventory, $2,156,200; Work in Process Inventory, $3,371,000; and Finished Goods Inventory, $1,596,400.
During the fiscal year, the company's purchases of direct materials totaled $6,750,000. Direct labor hours totaled 142,500, and the average labor rate was $8.20 per hour. The following overhead costs were incurred during the year: depreciation-plant and equipment, $685,600; indirect labor, $207,300; property tax, plant and equipment, $94,200; plant maintenance, $83,700; small tools, $42,400; utilities, $96,500; and employee benefits, $76,100.
Required - Prepare a statement of cost of goods manufactured for the fiscal year ended October 31.