Question

1. prepare a condensed cost of goods manufacturer schedule

2. prepare an income statement for may theougu gross profit.

3. indicate the balance sheet presentation of the manufaturing incentoriws at May 31, 2020.

At May 31, 2020, the accounts of Vaughn Company show the following. 1. May 1 inventories-finished goods $14,300, Work in process $15, 100, and raw materials $8,900. 2. May 31 inventories-finished goods $9,600, work in process $16, 100, and raw materials $7,600. 3. Debit postings to work in process were direct materials $62,800, direct labor $53,100, and manufacturing overhead applied $42,300. (Assume that overhead applied was equal to overhead incurred.) 4. Sales revenue totaled $216,200.

Answer 1

$ 15,100 VAUGHN COMPANY Cost of Goods Manufactured Schedule For the Month ended May. 31,2020 Work in Process Inventory, May. 1.2020 Direct Material Raw Material Inventory, May. 1.2020 $ 8,900 Raw Material Purchase $ 61,500 Total Raw materials available for use $ 70,400 Deduct: Raw Materials Inventory, May 31,2020 $ 7.600 Direct Materials used $ Direct Labor $ Manufacturing Overhead applied S Total manufacturing costs Total cost of work in Process Deduct: Work in Process inventory, May 31,2020 Cost of Goods Manufactured 62,800 53,100 42,300 $158.200 $173,300 $ 16,100 $157,200

216,200 VAUGHN COMPANY Income Statement For the Month ended May. 31,2020 Sales Revenue Cost of goods Sold Finished Goods Inventory, May. 1.2020 $ 14,300 Cost of Goods Manufactured $157,200 Cost of Goods available for sale $171,500 Deduct: Finished Goods Inventory, May 31,2020 $ 9,600 Cost of goods Sold Gross Profit $ $ 161,900 54,300 VAUGHN COMPANY (Partial) Balance Sheet May. 31,2020 Current assets Inventories Finished Goods work in Process Raw Materials $ 9,600 $ 16,100 $ 7,600 S 33,300