Question

Bledsoe Corporation has provided the following data for the month of November: 9 Raw materials Work in process Finished Goods Beginning $ 25,700 $ 17,700 $ 48,700 Ending $ 21,700 $ 10,700 $ 56,700 10 points Additional information: eBook References Raw materials purchases Direct labor cost Manufacturing overhead cost incurred Indirect materials included in manufacturing overhead cost incurred Manufacturing overhead cost applied to Work in Process $72,700 $92,700 $ 42,770 $ 4,070 $41,700 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. Required: Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold.

Answer 1

4

BLEDSOE CORPORATION
Cost of Goods Manufactured
Direct materials:
Beginning materials inventory	$25,700
Add: Purchases of raw materials	$72,700
Raw materials available for use                       [$25,700 + $72,700]	$98,400
Less: Ending raw materials inventory	$21,700
Raw materials used in production                    [$98,400 - $21,700]	$76,700
Less: Indirect materials included in manufacturing overhead incurred	$4,070	$72,630 [$76,700 - $4,070]
Direct labor		$92,700
Manufacturing overhead applied to Work in Process		$41,700
Total manufacturing costs          [$72,630 + $92,700 + $41,700]		$207,030
Add: Beginning work in process inventory		$17,700
[$207,030 + $17,700]		$224,730
Less: Ending work in process inventory		$10,700
Cost of goods manufactured       [$224,730 - $10,700]		$214,030

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BLEDSOE CORPORATION
Cost of Goods Sold
Beginning finished goods inventory	$48,700
Add: Cost of goods manufactured         [Refer schedule of cost of goods manufactured]	$214,030
Cost of goods available for sale	$262,730
Less: Ending finished goods inventory	$56,700
Unadjusted cost of goods sold	$206,030
Add: Underapplied overhead       [Overhead incurred - Overhead applied = $42,770 - $41,700]	$1,070
Adjusted cost of goods sold	$207,100