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

Answer 1

a
LOPEZ COMPANY
Cost of Goods Manufactured Schedule
For the Month Ended May 31, 2017
Work in process, May 1		17600
Direct materials used	64300
Direct labor	51400
Manufacturing overhead applied	42100
Total manufacturing costs		157800
Total cost of work in process		175400
Less: Work in process, May 31		17000
Cost of goods manufactured		158400
b
LOPEZ COMPANY
(Partial) Income Statement
For the Month Ended May 31, 2017
Sales revenue		217000
Cost of goods sold
Finished goods, May 1	14800
Cost of goods manufactured	158400
Cost of goods available for sale	173200
Less: Finished goods, May 31	9600
Cost of goods sold		163600
Gross profit		53400
c
LOPEZ COMPANY
(Partial) Balance Sheet
May 31, 2017
Current Assets:
Finished goods inventory	9600
Work in process inventory	17000
Raw materials inventory	8000
Total Current Assets	34600