Question

Bledsoe Corporation has provided the following data for the month of November Raw materials Work in process Finished Goods Beginning Ending $ 25,300 $21,300 $ 17,300 $10,300 $ 48,300 $56,300 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 $72,300 $92,300 $ 42,330 $ 4,030 $ 41,300 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. Required: Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold.

Answer 1

Solution:
1st	Bledsoe Corporation
	Schedule of cost of goods manufactured
	Direct Materials:
	Beginning materials inventory	25,300
	Add: Purchases of raw materials	72,300
	Raw materials available for use	97,600
	Deduct: Ending raw materials inventory	21,300
	Raw materials used in production	76,300
	Less indirect materials included in manufacturing overhead incurred	4,030	72,270
	Direct Labor		92,300
	Manufacturing overhead applied to Work in Process		41,300
	Total manufacturing costs		205,870
	Add: Beginning work in process inventory		17,300
			223,170
	Deduct: Ending work in process inventory		10,300
	Cost of goods manufactured		212,870
Working Notes:
	Bledsoe Corporation
	Schedule of cost of goods manufactured
	Direct Materials:
a	Beginning materials inventory	25,300
b	Add: Purchases of raw materials	72,300
c=a+b	Raw materials available for use	97,600
d	Deduct: Ending raw materials inventory	21,300
e=c-d	Raw materials used in production	76,300
f	Less: Indirect materials included in manufacturing overhead cost incurred	4,030	72,270	f=e-f
g	Direct Labor		92,300
h	Manufacturing overhead applied to Work in Process		41,300
	Total manufacturing costs		205,870	i=f+g+h
	Add: Beginning work in process inventory		17,300	j
			223,170	k=i+j
	Deduct: Ending work in process inventory		10,300	l
	Cost of goods manufactured		212,870	m=k-l
2nd	Bledsoe Corporation
	Cost of goods sold
	Beginning finished goods inventory	48,300
	Add: Cost of goods manufactured	212,870
	Goods available for sale	261,170
	Deduct: Ending finished goods inventory	56,300
	Unadjusted cost of goods sold	204,870
	Add: Underapplied overhead	1,030
	Adjusted cost of goods sold	205,900
Notes:
	Bledsoe Corporation
	Cost of goods sold
a	Beginning finished goods inventory	48,300
b	Add: Cost of goods manufactured	212,870
c=a+b	Goods available for sale	261,170
d	Deduct: Ending finished goods inventory	56,300
e=c-d	Unadjusted cost of goods sold	204,870
f	Add: Underapplied overhead	1,030
g=e+f	Adjusted cost of goods sold	205,900
	Underapplied overhead = Manufacturing overhead cost incurred - Manufacturing overhead cost applied to Work in Process
		=42,330 - 41,300
		=$1,030
Please feel free to ask if anything about above solution in comment section of the question.