Question

Panther Corporation has provided the following data concerning last month's operations.

Purchases of raw materials$32,000

Indirect materials included in manufacturing overhead$5,000

Direct labor cost$58,000

Manufacturing overhead applied to Work in Process$99,000

Overapplied overhead$2,000

BeginningEnding

Raw materials inventory$12,000$16,000

Work in process inventory$48,000$53,000

Finished goods inventory$41,000$47,000

Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.

Required:

a. Prepare a Schedule of Cost of Goods Manufactured for the month.

b. Prepare a Schedule of Cost of Goods Sold for the month.

Answer 1

Requirement a:

Panther Corporation
Schedule of Cost of Goods Manufactured
For Year Ended December 31, 2019
Direct Materials:
Beginning inventory	$ 12,000
Purchase of raw materials	$ 32,000
Raw materials available for use		$ 44,000
Ending inventory		($ 16,000)
Indirect materials		($ 5,000)
Direct Materials Used		$ 23,000
Direct Labor		$ 58,000
Manufacturing Overhead Applied		$ 99,000
Total Manufacturing Costs		$ 157,000
Add: Work in process inventory, beginning		$ 48,000
Less: Work in process inventory, ending		($ 53,000)
Cost of goods Manufactured		$ 152,000

Requirement b:

Panther Corporation
Schedule of Cost of Goods Sold
Cost of Goods Manufactured	$ 152,000
Add Beginning Finished Goods Inventory	$ 41,000
deduct: Ending finished goods inventory	$ 47,000
Cost of goods sold before adjustments	$ 240,000
(Less):Overapplied overhead	($ 2,000)
Cost of goods sold	$ 238,000