Question

At May 31, 2020, the accounts of Lopez Company show the following. 1. May 1 inventories-finished goods $14,000, work in process $17,600, and raw materials $8,400. 2. May 31 inventories-finished goods $9,600, work in process $18,000, and raw materials $8,000. 3. Debit postings to work in process were direct materials $65,100, direct labor $51,600, and manufacturing overhead applied $40,200. (Assume that overhead applied was equal to overhead incurred.) 4. Sales revenue totaled $216,500.

Answer 1

LOPEZ COMPANY Cost of Goods Manufactured Schedule For the Month Ended May. 31, 2020 Work in process, May 1 $ 17,600 Direct Materials Used $ 65,100 Direct Labour $ 51,600 Manufacturing overhead applied S 40,200 Total Manufacturing Costs $156,900 Total Cost of Work in process $174,500 Less: Work in Process May 31 $ 18,000 Cost of Goods manufactured $156,500

LOPEZ COMPANY (Partial) Income Statement For the Month Ended May. 31, 2020 Sales Revenue $216,500 Cost of Goods Sold Finished Goods, May 1 $ 14,000 Cost of Goods Manufactured $156,500 Cost of Goods available for Sale $170,500 Less: finished Goods, May 31 $ 9,600 Cost of Goods sold $ 160,900 Gross Profit $ 55,600 LOPEZ COMPANY (Partial) Balance sheet May 31, 2020 Current assets Inventory Raw Materials Work in Process Finished goods Total Current Assets $ 8,000 $ 18,000 $ 9,600 $ 35,600