Question

Complete the Cost of Goods Manufactured Schedule and associated partial financial statments, (a), (b) and(c)for the Problem information for Lopez Company below. (blue shaded cells are calculated values) LOPEZ COMPANY Cost of Goods Manufactured Schedule (condensed For the Month Ended May 31, 2017 Work in process, May 1 Direct materials used Direct labor Manufacturing overhead applied Total manufacturing costs Total cost of work in process At May 31, 2017, the accounts of Lopez Company show the following 1. May 1 inventories-finished goods $13,500, work in process $22,550, and raw materials $9,950. 2. May 31 inventories-finished goods $15,400, work in process $19,900, and raw materials $5,800 3. Debit postings to work in process durin May were: direct materials $54,200, direct labor $32,000, and manufacturing overhead applied $42,000. 4. Sales totaled $250,000. Less: Work in process, May 31 Cost of goods manufactured Instructions a) Prepare a condensed cost of goods manufactured schedule. b) Prepare an income statement for May through gross profit. c) Indicate the balance sheet presentation of the manufacturing inventories at May 31, 2017 LOPEZ COMPANY (Partial Income Statement For the Month Ended May 31, 2017 Sales revenue Cost of goods sold Finished goods, May 1 Cost of goads manufactured Cost of goods available for sale Less: Finished goods, May 31 Cost of goods sold Gross profit MANTLE COMPANY (Partial) Balance sheet May 31, 2017 Current assets: Finished goods inventory Work in process inventory Raw materials inventory

Answer 1

Ans a Lopez Company Cost of Goods Manufactured Schedule (Condensed) For the Month Ended May, 2017 Working: Particulars Work-in-Progress May 1 Direct Material used (Note 1) Direct Labor Manufacturing Overhead Applied Total Manufacturing cost Total Cost of Work-in-Progress Less: Work-in-Progress May 31 Cost of Goods Manufactured Amount Amount $22,550 1 Direct Material Used $58,350 $32,000 $42,000 Raw Material May1 Add: Direct Material Purchased Less: Raw Material May 31 Direct Material Used $9,950 $54,200 $5,800 $58,350 132,350 $154,900 19,900 $135,000 Ans b Lopez Company Income Statement (Partial) For the Month Ended May, 2017 Ans c Lopez Company Balance Sheet (Partial) May 31, 2017 Particulars Sales Revenue Less: Cost of Good Sold Amount Amount Particulars Amount Amount $250,000 Current Assets: Finished Goods Inventory Work-in-Progress Inventory Raw Materials Invento 15,400 $19,900 $5,800 Finished Goods May 1 Cost of Goods Manufactured Cost of Goods Available for sale Less: Finished Goods May 31 $13,500 135,000 148,500 ($15,400 $41,100 Cost of Good Sold Gross Profit $133,1 116,900