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Requirement 1. Prepare a schedule for the cost of goods manufactured for

20172017.

Begin by preparing the schedule of cost of goods manufactured (in thousands). Start with the direct materials and labor costs, then indirect manufacturing costs, and complete the schedule by calculating cost of goods manufactured.

Neal Company
Schedule of Cost of Goods Manufactured
For the Year Ended December 31, 2017 (in thousands)
Direct materials:
	Beginning inventory, Jan. 1, 2017
	Purchases of direct materials
	Cost of direct materials available for use
	Ending inventory, Dec. 31, 2017
Direct materials used
Direct manufacturing labor

	Beginning of	End of
Neal Company	2017	2017
Direct materials inventory	22,000	29,000
Work-in-process inventory	21,000	20,000
Finished-goods inventory	10,000	27,000
Purchases of direct materials		76,000
Direct manufacturing labor		25,000
Indirect manufacturing labor		15,000
Plant insurance		7,000
Depreciationplant, building, and equipment		12,000
Repairs and maintenanceplant		3,000
Marketing, distribution, and customer-service costs		95,000
General and administrative costs		32,000

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