Questions: Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Firetree Manufacturing Company for the month ended March 31 are as follows: DATA Inventories March 1 March Materials 187,200 172,130 Work in process 388,570 454,970 Finished goods 522,560 549,020 Direct labor 3,120,000 Materials purchased during March 2,376,720 Factory overhead incurred during March: 285,250 Indirect labor 187,200 Machinery depreciation 156,000 Heat, light, and power 31,110 Supplies 26,740 Property taxes 40,740 REQUIRED: a. Prepare a cost of goods manufactured statement for March.

To prepare a Cost of Goods Manufactured (COGM) statement for Firetree Manufacturing Company for the month ended March 31, we need to follow these steps:

1. Calculate Total Manufacturing Costs:

   • Direct Materials Used: \[ \text{Beginning Materials Inventory} + \text{Materials Purchased} - \text{Ending Materials Inventory} \] \[ = \$187,200 + \$2,376,720 - \$172,130 = \$2,391,790 \]

   • Direct Labor: \[ = \$3,120,000 \]

   • Factory Overhead: \[ \text{Factory Overhead Incurred} = \$285,250 \] \[ \text{Total Factory Overhead} = \text{Indirect Labor} + \text{Machinery Depreciation} + \text{Heat, Light, and Power} + \text{Supplies} + \text{Property Taxes} \] \[ = \$187,200 + \$156,000 + \$31,110 + \$26,740 + \$40,740 = \$441,790 \]

   • Total Manufacturing Costs: \[ = \text{Direct Materials Used} + \text{Direct Labor} + \text{Total Factory Overhead} \] \[ = \$2,391,790 + \$3,120,000 + \$441,790 = \$5,953,580 \]

2. Calculate Cost of Goods Manufactured:

   • Add: Beginning Work in Process Inventory: \[ = \$388,570 \]

   • Subtract: Ending Work in Process Inventory: \[ = \$454,970 \]

   • Cost of Goods Manufactured: \[ = \text{Total Manufacturing Costs} + \text{Beginning Work in Process Inventory} - \text{Ending Work in Process Inventory} \] \[ = \$5,953,580 + \$388,570 - \$454,970 = \$5,887,180 \]

Cost of Goods Manufactured Statement for March:

\[ \begin{array}{l} \hline \text{Firetree Manufacturing Company} \\ \text{Cost of Goods Manufactured Statement} \\ \text{For the Month Ended March 31} \\ \hline \text{Direct Materials:} \\ \quad \text{Beginning Materials Inventory} \quad \$187,200 \\ \quad \text{Add: Materials Purchased} \quad \$2,376,720 \\ \quad \text{Less: Ending Materials Inventory} \quad (\$172,130) \\ \quad \text{Direct Materials Used} \quad \$2,391,790 \\ \text{Direct Labor} \quad \$3,120,000 \\ \text{Factory Overhead:} \\ \quad \text{Indirect Labor} \quad \$187,200 \\ \quad \text{Machinery Depreciation} \quad \$156,000 \\ \quad \text{Heat, Light, and Power} \quad \$31,110 \\ \quad \text{Supplies} \quad \$26,740 \\ \quad \text{Property Taxes} \quad \$40,740 \\ \quad \text{Total Factory Overhead} \quad \$441,790 \\ \text{Total Manufacturing Costs} \quad \$5,953,580 \\ \text{Add: Beginning Work in Process Inventory} \quad \$388,570 \\ \text{Less: Ending Work in Process Inventory} \quad (\$454,970) \\ \text{Cost of Goods Manufactured} \quad \$5,887,180 \\ \hline \end{array} \]

In summary, the Cost of Goods Manufactured for Firetree Manufacturing Company for March is \$5,887,180.