Question

Bledsoe Corporation has provided the following data for the month of November Raw materials Work in process Finished Goods Beginning Ending $ 26,500 $22,500 $ 18,500 $11,500 $ 49,500 $57,500 Additional information: Raw materials purchases Direct labor cost Manufacturing overhead cost incurred Indirect materials included in manufacturing overhead cost incurred Manufacturing overhead cost applied to work in Process $73,500 $93,500 $43,650 $ 4,150 $42,500 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. Required: Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold

Answer 1

Answers

• [1]

Schedule of Cost of Goods Manufactured
Direct materials:
Beginning raw material inventory	$26,500
Add: Purchase of raw material	$73,500
Total raw materials available	$100,000
Less: Ending raw material inventory	$22,500
Raw material used in production	$77,500
Less: Indirect materials	$4,150	$73,350
Direct labor cost		$93,500
Manufacturing Overhead applied		$42,500
Total manufacturing costs		$209,350
Add: Beginning WIP Inventory		$18,500
Total cost of Work in Process		$227,850
Less: Ending WIP Inventory		$11,500
Cost of Goods manufactured		$216,350

• [2]

Schedule of Cost of Goods Sold
Beginning Finished Goods Inventory	$49,500
Add: Cost of Goods manufactured	$216,350
Cost of Goods available for sale	$265,850
Less: Ending finished goods inventory	$57,500
Unadjusted Cost of Goods Sold	$208,350
Add: Under applied Overheads [$ 43650 incurred - $ 42500 cost applied]	$1,150
Cost of Goods Sold [adjusted]	$209,500