Statement of Cost of Goods
Manufactured from Percent Relationships
Information about NuWay Products Company for the year ending December 31, 2010, follows:
* Sales equal $550,000.
* Direct materials used total $70,000.
* Manufacturing overhead is 150 percent of direct labor dollars.
* The beginning inventory of finished goods is 20 percent of the cost of goods sold.
* The ending inventory of finished goods is twice the beginning inventory.
* The gross profit is 20 percent of sales.
* There is no beginning or ending work-in-process.
Prepare a statement of cost of goods manufactured for 2010. (Hint: Prepare an analysis of
changes in Finished Goods Inventory.)
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