There are 2 blanks next to Material handling…Do I drop the total amount down from materials used and direct labor? Or do I leave this blank?
Cost of Goods Manufactured, Cost of Goods Sold Hayward Company, a manufacturing firm, has supplied the following information from its accounting records for the month of May: Direct labor cost $10,500 Purchases of raw materials 15,000 Supplies used 675 Factory insurance 350 Commissions paid 2,500 Factory supervision 2,225 Advertising 800 Material handing 3,750 Materials inventory, May 1 3,475 Work-in-process inventory, May 1 12,500 Finished goods inventory, May 1 6,685 Materials inventory, May 31 9,500 Work-in-process inventory, May 31 14,250 Finished goods inventory, May 31 4,250 Hayward Company Statement of Cost of Goods Manufactured For the Month of May Direct materials used 8,975 Direct labor 10,500 Manufacturing overhead: Factory supplies 675 Factory insurance 350 Factory supervision 2,225 Material handling 3,750 Total manufacturing cost for May 26,475 Work in process, May 1 12,500 Work in process, May 31 14,250 24,725 Cost of goods manufactured. .
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