Question

Bledsoe Corporation has provided the following data for the month of November:

Inventories:	Beginning		Ending
Raw materials	$	25,700	$	21,700
Work in process	$	17,700	$	10,700
Finished Goods	$	48,700	$	56,700

Additional information:

Raw materials purchases	$	72,700
Direct labor cost	$	92,700
Manufacturing overhead cost incurred	$	42,770
Indirect materials included in manufacturing overhead cost incurred	$	4,070
Manufacturing overhead cost applied to Work in Process	$	41,700

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

	Bledsoe corporation
	Schedule of Cost of goods Manufactured
	Direct Materials
	Raw Material Inventory beginning	$     25,700
Add:	Purchases of raw Material	$     72,700
	Total Raw Material available	$     98,400
Deduct:	Raw Material Inventory ending	$     21,700
	Raw Material used in production	$     76,700
Deduct:	Indirect raw material included in manufacturing overhead cost incurred	$       4,070	$     72,630
	Direct Labor		$     92,700
	Manufacturing overhead applied to work in process		$     41,700
	Total manufacturing cost		$ 2,07,030
Add:	Beginning work in process inventory		$     17,700
			$ 2,24,730
Deduct:	Ending work in process inventory		$     10,700
	Cost of goods manufactured		$ 2,14,030
	Bledsoe corporation
	Schedule of Cost of Goods Sold
	Finished Goods Inventory Beginning		$     48,700
Add:	Cost of goods manufactured		$ 2,14,030
	Cost of goods available for sale		$ 2,62,730
Deduct:	Finished Goods Inventory Ending		$     56,700
	Unadjusted cost of goods sold		$ 2,06,030
Add:	Underapplied Overheads ($42770 - $41700)		$       1,070
	Adjusted cost of goods sold		$ 2,07,100