Question

Check my work 1 Fox Company manufactures soccer balls in two sequential processes: Cutting and Stitching. All direct materials enter production at the beginning of the Cutting process. The following information is available regarding its May inventories: Beginning Inventory $ 86, 000 203, 500 223, 300 180, 100 Ending Inventory $104, 050 59, 500 140, 500 40, 250 15 points Raw materials inventory Work in process inventory Cutting Work in process inventoryStitching Finished goods inventory еВook Print The following additional information describes the company's production activities for May. References Direct materials $ 105, 000 25, 750 Raw materials purchased on credit Direct materials used-Cutting Direct materials used-Stitching Direct labor $ 23, 600 94, 400 176, 200 Direct labor-Cutting Direct labor-Stitching Total factory payrol1 paid (in cash) Factory Overhead (Actual costs) $ 61, 200 58, 200 63, 000 Indirect materials used Indirect labor used Other overhead costs Factory Overhead Rates Cutting Stitching Sales (150% of direct materials used) (120% of direct labor used) $896, 000

Answer 1

1.

Ending raw material inventory for the month of May Beginning raw materials inventory $86,000 Add:Raw materials purchased $105,000 Materials avaliable for use $191,000 Less:Raw materials used for cutting ($25,750) Less:Indirect materials used ($61,200) Ending raw material inventory $104,050

2.

Cost of goods manufacturing(cutting) for the month of May Direct material $25,750 Add:Direct labor $23,600 Add:Factory overheads (25,750*150%) $38,625 Total manufacturing costs added during may $87,975 Add:opening WIP $203,500 Total cost of work in process $291,475 Less:closing WIP ($59,500) Cost of goods manufactured tranferred to stitching $231,975

3.

Cost of goods manufacturing stitching) for the month of May Tranferred from cutting $231,975 Add:Direct labor $94,400 Add:Factory overhead (94,400*120%) $113,280 Total manufacturing cost during may $439,655 Add: Opening WIP $223,300 Total cost of work in process $662,955 Less:closing WIP ($140,500) Cost of goods manufactured $522,455

4.

Cost of goods sold for the month of May Cost of goods manufactured Add:Opening finished goods Cost of goods available for sale Less:closing finished goods Cost of goods sold $522,455 $180,100 $702,555 ($40,250) $662,305

5.

Gross proft for the month of May Sales Less.cost of goods sold Gross profit $896,000 ($662,305) $233,695