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:
$\begin{array}{lcr} & \text { May 31 } & \text { June 30 } \\\text { Materials Inventory } & \$ 354,100 & \$ 327,400 \\\text { Work in Process Inventory } & 112,600 & 116,400 \\\text { Finished Goods Inventory } & 138,500 & 142,800 \\\end{array}$ 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.