Question

An analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended June 30, 2020. Inventory Raw materials Work in process Finished goods Beginning Ending $9,760 $16,300 6,240 7,420 9,300 6,730 Costs incurred: raw materials purchases $55,480, direct labor $49,600, manufacturing overhead $22,610. The specific overhead costs were: indirect labor $6,460, factory insurance $4,400, machinery depreciation $4,190, machinery repairs $2,180, factory utilities $3,740, and miscellaneous factory costs $1,640. Assume that all raw materials used were direct materials. (a) Prepare the cost of goods manufactured schedule for the month ended June 30, 2020.

Answer 1

Ans. A	COST   OF   GOODS   MANUFACTURED SCHEDULE
	For the month Ended June 30, 2020
	Particulars	Amount	Amount
	Beginning Work in process inventory		$6,240
	Direct materials:
	Beginning raw materials inventory	$9,760
	Add: Purchase of direct materials	$55,480
	Raw materials available	$65,240
	Less: Ending raw materials inventory	-$16,300
	Direct materials used (A)		$48,940
	Direct labor (B)		$49,600
	Manufacturing overhead applied:
	Indirect labor	$6,460
	Factory insurance	$4,400
	Machinery depreciation	$4,190
	Machinery repairs	$2,180
	Factory utilities	$3,740
	Miscellaneous factory cost	$1,640
	Total manufacturing overhead ©		$22,610
	Total manufacturing costs (A+B+C)		$121,150
	Total cost of work in process		$127,390
	Less: Ending Work in process inventory		-$7,420
	Cost of goods manufactured		$241,120
	Total cost of work in process    =    Beginning work in process + Total manufacturing costs
Ans. B	ROBERTS   COMPANY
	(Partial) Balance Sheet
	For the month Ended June 30, 2020
	Current Assets:
	Inventories:
	Raw materials	$16,300
	Work in process	$7,420
	Finished goods	$6,730
	Total inventory		$30,450
	*Ending inventories are listed in the balance sheets.