Question

P1: 20/100 points The following information is for Life Today Company for June, 2018 Raw Materials WIP Finished Goods Beg Inventory, June 1 $12,000 $7,000 $9,000 $25,000 $20,000 Ending Inventory, June 30 Raw Materials Purchased in June Direct Materials Used in June Direct Labor for assembly line, June Total Manufacturing Costs for June Company's Presidents Sala Depreciation on copier machine in CEO's office Sales commissions for June's sales Actual MOH for June $80,000 $60,000 $72,000 $182.000 $278,000 $960 $45,000 $49,500 Assume that the company uses the NORMAL method of costing (what we have been doing) rather than ACTUAL method of costing. Assume all raw materials put into production are considered Direct Materials Required: Answer the following the questions - Explain your work. If you want to email me a PDF of the T-accounts at the time you submit your work that can count as explaining your work. LABEL your responses by corresponding letter. For example, a. $1,000,000 A. Ending raw materials inventory B. Manufacturing overhead applied during the month of June (before any $ adjustment for over- or under-applied MOH) C. Cost of goods manufactured during June D. Cost of goods sold during June before any adjustment E. Was manufacturing overhead over- or under-applied during June? F. If so, what was the dollar amount? G. Given your answers in (e) What is adjusted CGS for June?

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.
A. Ending Raw Material Inventory:
Beginning Raw material Inventory		$ 12,000
Add: Purchase		$ 80,000
Less: Raw Material used		$ -60,000
Ending Raw Material Inventory		$ 32,000
B. Manufacturing overhead Applied
Total Manufacturing cost		$182,000
Less: Direct Material		$ -60,000
less: Direct Labor		$ -72,000
Manufacturing overhead applied		$ 50,000
C. Cost of goods manufactured in June
Total Manufacturing cost for June		$182,000
Add: Beginning Work in process		$    7,000
Less: Ending work in process		$   -9,000
Cost of goods manufactured in June		$180,000
D. Cost of goods sold
Cost of goods manufactured in June		$180,000
Add: Beginning Finished goods inventory		$ 25,000
Less: Ending finished goods inventory		$ -20,000
Cost of goods sold		$185,000
E. and F
Applied Overheads		$ 50,000
Actual Overheads		$ 49,500
Overeapplied overheads		$        500
G. Adjusted COGS
Unadjusted COGS		$185,000
Less: Overapplied overheads		$      -500
Adjusted COGS		$184,500