Question

The following information was obtained from the records of Appleton Corporation during 2018. • Manufacturing Overhead was applied at a rate of 100 percent of direct labor dollars. • Beginning value of inventory follows: • Beginning Work in Process Inventory, $7,000. . Beginning Finished Goods Inventory, $12,000. . During the period, Work in Process Inventory decreased by 20 percent, and Finished Goods Inventory increased by 25 percent. • Actual manufacturing overhead costs were $89,000. • Sales were $411,000 • Adjusted Cost of Goods Sold was $309,000. Required: Use the preceding information to find the missing values in the following table: Amount 84,000 Item Direct Materials Used Direct Labor Manufacturing Overhead Applied Total Current Manufacturing Costs Plus: Beginning Work in Process Inventory Less: Ending Work in Process Inventory Cost of Goods Manufactured Plus: Beginning Finished Goods Inventory 7,000 12,000 Less: Ending Finished Goods Inventory Unadjusted Cost of Goods Sold Overhead Adjustment Adjusted Cost of Goods Sold $ 309,000

Answer 1

Answer:

Item	Amount($)
Direct material used(305600-84000-84000)	1,37,600
direct labor(84,000/100%)	84,000
Manufacturing overhead applied	84,000
Total current manufacturing cost(307000+5600-7000)	3,05,600
Plus: beginning work in process inventory	7,000
Less: ending work in process(7000×80%)	5,600
Cost of goods manufactured(304000+15000-12000)	3,07,000
Plus: beginning finished good inventory	12,000
Less :ending finished goods inventory(12000×125%)	15,000
Unadjusted cost of goods sold(309,000-5000)	3,04,000
Add:Overhead adjustment(89,000-84000)	5,000
Adjusted cost of goods sold	3,09,000