Question

1. During July, Redard Corp’s purchase of direct materials totaled $139,000; direct labor for the month was 4,200 hours at $12.75 per hour. Redard also incurred the following overhead costs: utilities, $ 5,975, supervision, 16,000, indirect materials, 6,985, depreciation, 8,500, insurance 5,470 and miscellaneous 1,500. Beginning inventory accounts were as follows: Materials Inventory, 48,600, Work in Process Inventory, 54,250, and Finished Goods Inventory $38,500. Ending inventory as follows: Materials Inventory, 50,100, Work in Process Inventory, 48,400, and Finished Goods Inventory $37,450. Prepare a statement of cost of goods manufactured and the cost of goods sold section of the income statement

Answer 1

Schedule of Cost of Goods Manufactured
Direct Material
Raw material Inventory Beginning	$        48,600.00
Raw material Purchased	$    1,39,000.00
Raw material available for use	$    1,87,600.00
Less: Raw material Inventory Ending	$        50,100.00
Direct Material Used		$     1,37,500.00
Direct labor		$         53,550.00
Manufacturing overheads
Utilities	$          5,975.00
Supervision	$        16,000.00
Indirect material	$          6,985.00
Depreciation	$          8,500.00
Insurance	$          5,470.00
Miscellaneous	$          1,500.00
Total Manufacturing overheads		$         44,430.00
Total manufacturing Cost		$     2,35,480.00
Add: Work in process Beginning		$         54,250.00
Total Work in Process		$     2,89,730.00
Less: Work in progress Ending		$         48,400.00
Cost of Goods Manufactured		$     2,41,330.00

Schedule of cost of goods sold
Beginning Finished Goods Inventory		$         38,500.00
Add: Cost of goods manufactured		$     2,41,330.00
Goods Available for sale		$     2,79,830.00
Less :Ending Finished goods Inventory		$         37,450.00
Cost of Goods Sold		$     2,42,380.00