Question

Bledsoe Corporation has provided the following data for the month of November Raw materials Work in process Finished Goods Beginning Ending $ 27,000 $23,000 $ 19,000 $12,000 $ 50,000 $58,000 Additional information: Raw materials purchases Direct labor cost Manufacturing overhead cost incurred Indirect materials included in manufacturing overhead cost incurred Manufacturing overhead cost applied to Work in Process $74,000 $94,000 $44,200 $ 4,200 $43,000 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.

Answer 1

BLED SOE CORPORATION Schedule of cost of goods manufactured Direct Materials: Beginning materials inventory $ 27,000 Add: Purchases of raw materials $74,000 Raw materials available for use $ 101,000 Deduct: Ending raw materials inventory $23,000 Raw materials used in production $ 78,000 Less: Indirect materials included is manufacturing & 4.200 $ 73,800 Direct Labor $ 94,000 Manufacturing overhead applied to Work in Process $ 43,000 Total manufacturing costs $210,800 $ 19000 Addi Beginning work in process inventory $229,800 Deduct: Ending work in Process inventory $ 12,000 I Cost of goods manufactured $217,800 overhead incurred

(2) BLEDSOE CORPORATION Schedule of cost of Gooels sold Beginning finished goods inventory Add: cost of goods manufactured Goods available for sale Deduct: Ending finished gools inventory Un adjusted cost of goods sold Add: Under applied overhead Adjusted cost of goods sold $50,000 $ 217,800 $267,800 $ 58,000 $209,800 $ 1,200 $ 211,000 Calculation: Underapplied overhead = (Manufacturing overhead cost incurred - Manufacturing overhead cost applied to work in Procces) = $ 44,200 - $43,000 = $1,200