Question

13) Cienfuegos Corporation has provided the following data concerning last month's operations. Purchases of raw materials $36,000 Indirect materials included in manufacturing overheads 4,000 Direct labor cost S58,000 Manufacturing overhead applied to Work in Process Sp0,000 Overapplied overhead 3.000 Beginning Ending Raw materials inventory 10,000 $21,000 Work in process inventory 62,000 $70,000 Finished goods inventory 36,000|40,000 The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold? A) $157,000 B) $154,000 C) $161,000 D) $197,000 14) Haver Corporation has provided the following data concerning last month's operations. Purchases of raw materials $32.000 Indirect materials included in manufacturing overheads 4,000 Direct labor cost $$8,000 Manufacturing overhead applied to Work in Process $4,000 Beginning Ending Raw materials inventory 10,000 16,000 Work in process inventory 58,0001374,000| Finished goods inventory $32,000|599,000 How much is the cost of goods available for sale on the Schedule of Cost of Goods Sold? A) $180,000 B) $148,000 C) $131,000 D) $134,000

Answer 1

Adjusted cost of goods sold	Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory - Overapplied overhead
Calculate cost of goods manufactured
Beginning work in process inventory		$62,000
Add: Manufacturing costs
Direct material used
Beginning raw material inventory	$10,000
Add: Purchases of raw material	$36,000
Less: Ending raw material inventory	$21,000
Less: Indirect material used	$4,000
Direct material used		$21,000
Direct labor costs		$58,000
Manufacturing overhead applied		$90,000
Less: Ending work in process inventory		-$70,000
Cost of goods manufactured		$161,000
Adjusted cost of goods sold	36000+161000-40000-3000
Adjusted cost of goods sold	$154,000
Thus, adjusted cost of goods sold is $154,000
Cost of goods available for sale	Beginning finished goods inventory + Cost of goods manufactured
Calculate cost of goods manufactured
Beginning work in process inventory		$58,000
Add: Manufacturing costs
Direct material used
Beginning raw material inventory	$10,000
Add: Purchases of raw material	$32,000
Less: Ending raw material inventory	$16,000
Less: Indirect material used	$4,000
Direct material used		$22,000
Direct labor costs		$58,000
Manufacturing overhead applied		$84,000
Less: Ending work in process inventory		-$74,000
Cost of goods manufactured		$148,000
Cost of goods available for sale	32000+148000
Cost of goods available for sale	$180,000
Thus, cost of goods available for sale is $180,000