Reference no: EM132655124

Pat Fike, accountant for Nozama Company, prepared the following amounts to include on the financial statements for the period ending August 31, 20XX.

Sales $1,200,000

Purchases of materials 250,000

Manufacturing labor 270,000

Advertising 37,000

Administrative travel 27,000

Manufacturing utilities 49,000

Facility rental 90,000

Depreciation 60,000

Sales commissions 31,000

Insurance 40,000

Office utilities 25,000

Management salaries 380,000

• The purchase of materials included 20% indirect materials. 40% of the manufacturing labor was for indirect manufacturing labor
• The facility was used partly for the sales and administrative team (20%) 30% of the depreciation expense was related to delivery trucks 60% of the insurance relates to manufacturing activities 40% of the management salaries relate to manufacturing activities .

Furthermore, Fike compiled the following information with respect to inventories for the period (note that the company does not maintain inventories of indirect materials).

              Direct materials      Work-in-progress        Finished goods

Beginning            $6,000           9,000                      11,000

Ending                 $8,000          10,000                      7,000

Required:

Problem 1: Prepare cost of goods manufactured statement for the period.