Question

Cepeda Corporation has the following cost records for June 2020. Indirect factory labor Direct materials used Work in process, 6/1/20 Work in process, 6/30/20 Finished goods, 6/1/20 Finished goods, 6/30/20 $4,750 21,330 3,400 4,540 6,090 8,470 Factory utilities Depreciation, factory equipment Direct labor Maintenance, factory equipment Indirect materials Factory manager's salary $440 1,590 42,300 1,900 2,140 3,360

Answer 1

a.

CEPEDA CORPORATION
Cost of Goods Manufactured Schedule
For the Month Ended June 30, 2020
Work in process inventory, June 1			3,400
Direct materials:
Direct materials used		21,330
Direct labor		42,300
Manufacturing Overhead:
Indirect labor	4,750
Factory utilities	440
Depreciation, Factory equipment	1,590
Maintenance, factory equipment	1,900
Indirect materials	2,140
Factory managers salary	3,360
Total Manufacturing Overhead		14,180
Total Manufacturing costs			77,810
Total cost of work in process			81,210
Less:Work in process inventory, June 30			-4,540
Cost of goods manufactured			$76,670

b.

CEPEDA CORPORATION
Income Statement (partial)
For the Month Ended June 30, 2020
Revenues
Sales revenue		88,170
Cost of goods sold:
Finished goods inventory, June 1	6,090
Cost of goods manufactured	76,670
Cost of goods available for sale	82,760
Less :Finished goods inventory, June 30	-8,470
Cost of goods sold		-74,290
Gross profit		$13,880

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