Question

1. Boursaw Corporation has provided the following data concerning last month’s operations.

$33,000 Purchases of raw materials Indirect materials included in manufacturing overhead Direct labor cost Manufacturing overhead applied to Work in Process Underapplied overhead $ 4,000 $58,000 $78,000 $ 5,000 Beginning Ending Raw materials inventory $10,000 $15,000 Work in process inventory $56,000 $72,000 Finished goods inventory $41,000 $49,000 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. How much is the direct materials cost for the month on the Schedule of Cost of Goods Manufactured? Multiple Choice $38,000 $24,000 $33,000 O O $43,000

2. Boursaw Corporation has provided the following data concerning last month’s operations.

3. Boursaw Corporation has provided the following data concerning last month’s operations.

4. Boursaw Corporation has provided the following data concerning last month’s operations.

Answer 1

Baursaw Corporation
Schedule of Cost of Goods Manufactured
Direct Materials:
Beginning Raw material inventory	10000
Add: Purchase of RM	33000
Total RM available	43000
Less: Ending RM inventory	15000
RM used in production	28000
Less: Indirect Materials	4000	24000
Direct Labor		58000
Manuf OH applied to WIP		78000
Total Manufacturing costs		160000
Add: Beginning WIP inventory		56000
		216000
Less: Ending WIP inventory		72000
Cost of Goods Manufactured		144000

1. Cost of direct materials = 10000 + 33000 - 15000 - 4000 = 24000 (B)

2. Total manufacturing cost = 24000 + 58000 + 78000 = 160000 (B)

3. Cost of goods manufactured = 160000 + 56000 - 72000 = 144000 (C)

Schedule of Cost of Goods Sold
Beginning finished goods inventory	41000
Add: Cost of goods manufactured	144000
Cost of goods available for sale	185000
Less: Ending finished goods inventory	(49000)
Unadjusted cost of goods sold	136000
Add: underapplied OH	5000
Adjusted cost of goods sold	141000

4. Adjusted COGS = 141000 (D)