Question

Bledsoe Corporation has provided the following data for the month of November:

Inventories:	Beginning	Ending
Raw materials	$25,000	$21,000
Work in process	$17,000	$10,000
Finished Goods	$48,000	$56,000

Additional information:

Raw materials purchases	$72,000
Direct labor cost	$92,000
Manufacturing overhead cost incurred	$42,000
Indirect materials included in manufacturing overhead cost incurred	$ 4,000
Manufacturing overhead cost applied to Work in Process	$41,000

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.

Essay

Answer 1

	Schedule of cost of Goods Manufactured
	Direct Materials
	Raw materials,beginning				25,000
	Raw materials purchases				72,000
	Raw materials available for use				97,000
	less raw materials,ending				21,000
	Raw materials used in production				76,000
	less indirect materials used in production				4,000	72,000
	Direct labor					92,000
	manufacturing overhead applied to WIP					41,000
	total manufacturing costs					205,000
	Add:Beginning WIP					17,000
						222,000
	less ending wIP					10,000
	cost of goods manufactured					212,000
	Cost of goods sold
	Beginning finished goods inventory					48,000
	Add:cost of goods manufactured					212,000
	goods available for sale					260,000
	less:ending finished goods inventory					56,000
	unadjusted cost of goods sold					204,000
	Add:underapplied overhead					1,000
	adjusted cost of goods sold					205,000