Reference no: EM132779010

Statement of Cost of Goods Manufactured from Percent Relationships

Information about Blue Line Products Company for the year ending December 31 follows:

Sales equal $580,000.                                                                                                                                                           Direct materials used total $105,000.
Manufacturing overhead is 200% of direct labor dollars.
The beginning inventory of finished goods is 25% of the cost of goods sold.
The ending inventory of finished goods is 1.5 times beginning inventory.
The gross profit is 20% of sales.
There is no beginning or ending work-in-process.

Problem 1: Create a statement of cost of goods manufactured for the year.