Martinez Manufacturing Co.

Following data was taken from the general ledger and other records of Martinez Manufacturing Co. at July 31, the end of the first month of operations in the current fiscal year:



Sales


$50,000

Materials inventory (July 1)


15,000

Work in process inventory (July 1)


20,000

Finished goods inventory (July 1)


28,000

Materials purchased


21,000

Direct labor cost


12,500

Factory overhead (including $5,000 of indirect materials used and $2,500 of indirect labor cost)




11,500

Selling and administrative expense


8,000

Inventories at July 31:




Materials


16,000

Work in process


18,000

Finished goods


30,000





a.


Prepare a statement of cost of goods manufactured.

b.


Determine the cost of goods sold for the month.
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