The Sorrel Pharmaceuticals Corporation Manufactures a Variety of Drugs That

Essay

The Sorrel Pharmaceuticals Corporation manufactures a variety of drugs that are marketed internationally.Inventories on May 31 and June 30 were as follows:
$$\begin{array} { l c c } & \mathbf { May 31} &\mathbf { June} \mathbf { 3 0 } \\ \text { Materials Inventory } &3 5 4 , 1 0 0&3 2 7 , 4 0 0 \\\text { Work in Process Inventory } & 112,600 & 116,400 \\\text { Finished Goods Inventory } & 138,500 & 142,800\end{array}$$ Purchases of materials for June were $142,600.Direct labor costs were incurred and computed on the basis of 27,000 hours at $8 per hour.Actual overhead costs incurred in June were as follows: operating supplies used,$5,700; janitorial and materials handling labor,$38,100; employee benefits,$110,800; heat,light,and power,$50,000; factory depreciation,$8,400; property taxes,$8,000; and expired portion of insurance premiums,$12,000.Net sales for June were $992,700.Selling and administrative expenses were $165,000.
Prepare a statement of cost of goods manufactured for the month ended June 30.