Question

An analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended June 30, 2020.

Inventory		Beginning		Ending
Raw materials		$9,630		$15,590
Work in process		5,810		7,430
Finished goods		9,820		6,450

Costs incurred: raw materials purchases $54,490, direct labor $50,940, manufacturing overhead $22,940. The specific overhead costs were: indirect labor $5,860, factory insurance $4,260, machinery depreciation $4,220, machinery repairs $2,630, factory utilities $3,990, and miscellaneous factory costs $1,980. Assume that all raw materials used were direct materials.

(a) Prepare the cost of goods manufactured schedule for the month ended June 30, 2020.

(b) Show the presentation of the ending inventories on the June 30, 2020, balance sheet.

Answer 1

a.

ROBERTS COMPANY
Cost of Goods Manufactured Schedule
For the Month Ended June 30, 2020
Work in process inventory, June 1			$        5,810.00
Direct materials:
Raw materials inventory, June 1		$      9,630.00
Raw materials purchases		$    54,490.00
Total raw materials available for use		$    64,120.00
Less: Raw materials inventory, June 30		$    15,590.00
Direct materials used		$    48,530.00
Direct labor		$    50,940.00
Manufacturing overhead:
Indirect labor	$        5,860.00
Factory insurance	$        4,260.00
Machinery depreciation	$        4,220.00
Factory utilities	$        3,990.00
Machinery repairs	$        2,630.00
Miscellaneous factory costs	$        1,980.00
Total manufacturing overhead		$    22,940.00
Total manufacturing costs			$   122,410.00
Total cost of work in process			$   128,220.00
Less: Work in process inventory, June 30			$        7,430.00
Cost of goods manufactured			$   120,790.00

b.

ROBERTS COMPANY
(Partial) Balance Sheet
30-Jun-20
Current assets
Inventories:
Finished goods	$        6,450.00
Work in process	$        7,430.00
Raw materials	$      15,590.00