Question

Exercise 15-9

At May 31, 2017, the accounts of Lopez Company show the following.

1.		May 1 inventories—finished goods $14,800, work in process $17,600, and raw materials $8,600.
2.		May 31 inventories—finished goods $9,600, work in process $17,000, and raw materials $8,000.
3.		Debit postings to work in process were direct materials $64,300, direct labor $51,400, and manufacturing overhead applied $42,100.
4.		Sales revenue totaled $217,000.

Prepare a condensed cost of goods manufactured schedule. LOPEZ COMPANY Cost of Goods Manufactured Schedule $ Prepare an income statement for May through gross profit. LOPEZ COMPANY (Partial) Income Statement

Answer 1

Cost of Goods Manufactued Schedule 17,600 Opening Balance in Work in Process Add: Cost incurred Raw Material cost Direct labor cost Manufacturing Overhead $ 64,300 $ 51,400 $ 42,100 $ Less: Closing Balance in Work in Process Cost of Goods Manufactured 157,800 175,400 (17,000) 158,400 Refer Note 2 7 Income Statement (Partial) Sales Revenue Less: Cost of Goods sold Gross Profit 217,000 (163,600) Refer Note 3 53,400

Amount Balance Sheet (Partial) Assets Current Assets Raw Material Inventory Work in Process Inventory Finished Goods Inventory 8,000 17,000 9,600 34,600 Notes Raw Material account Particulars To Opening Balance To Purchases(balancing figure) Amount Particulars $ 8,600 By Work in Process $ 63,700 By Closing Balance $ 72,300 Amount $ 64,300 $ 8,000 $ 72,300 $ -

Work in process account Particulars Amount Amount Particulars By Finished goods inventory (Balancing figure- Cost of $ 17,600 Goods manufactured) $ 64,300 By Closing Balance $ 51,400 $ 42,100 $ 175,400 To Opening Balance To Raw material To Direct labor To manufacturing overhead $ 158,400 $ 17,000 $ 175,400 $ - 3) Finished Goods Inventory account Particulars Amount Amount Particulars By Cost of Goods Sold $ 14,800 (Balancing Figure) $ 163,600 To Opening Balance To Work in process (Cost of Goods manufactured) $ 158,400 By Closing Balance $ 173,200 $ 9,600 $ 173,200 $ .