Question

Work in Process (WIP) P April 30 RM purchases Raw Materials (RM) 42,000 180.000 222.000 April 30 Finished Goods (FG) 63.000 28.100 Indirect materials Indirect labor Factory Overhead 10,000 34.500 Cost of goods sold Other overhead costs 93,500 34.900 126.000 May 31 Underapplied OH 138.000 Income statement (partial) $ 0

Answer 1

Cost of direct material used	$            156,000
Cost of direct labor used	$            115,500
cost of goods manufactured	$            324,425
Cost of goods sold	$            352,525
Gross Profit	$        1,447,475
Underapplied Overhead	$              74,475

Raw Materials(RM)
RM-April 30	$              42,000	$          10,000	Indirect Material
RM purchases	$            180,000	$        156,000	DM used(Bal. Fig.)
RM-May 31	$              56,000
Factory Payroll
Factory Payroll	$            150,000
		$          34,500	Indirect Labor
		$        115,500	DL used(Bal Fig.)
	$                       -
Factory Overhead
Indirect Materials	$              10,000	$          63,525	Overhead Applied
Indirect Labor	$              34,500		(115500*55%)
Other Overhead costs	$              93,500
Underapplied OH	$              74,475

Work In Process(WIP)
WIP-Apr 30	$            9,100
DM used(Bal. Fig.)	$        156,000
DL used(Bal Fig.)	$        115,500	$        324,425	Cost of goods Manufactured(Bal Fig.)
Overhead Applied	$          63,525
WIP-May 31	$          19,700
Finished Goods(FG)
FG-April 30	$          63,000
Cost of goods Manufactured(Bal Fig.)	$        324,425
		$        352,525	Cost of goods sold(Bal Fig.)
FG-May 31	$          34,900

Income Statement-Partial
Sales	$        1,800,000
Less:Cost of goods sold	$         (352,525)
Gross Profit	$        1,447,475