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Bledsoe Corporation has provided the following data for the month of November: Raw materials Work in process Finished Goods B
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BLEDSOE CORPORATION
Schedule of cost of goods manufactured
Direct materials :
   Beginning raw materials inventory 25400
   Add: Purchase of raw materials 72400
   Raw materials available for use 97800
   Less: Ending raw materials inventory 21400
   Raw materials used in production 76400
   Less: Indirect materials included in manufacturing overhead 4040 72360
Direct labor 92400
Manufacturing overhead applied to work in process 41400
Total manufacturing costs 206160
Add: Beginning work in process inventory 17400
Total cost of work in process inventory 223560
Less: Ending work in process inventory 10400
Cost of goods manufactured 213160
BLEDSOE CORPORATION
Schedule of cost of goods sold
Beginning finished goods inventory 48400
Add: Cost of goods manufactured 213160
Goods available for sale 261560
Less: Ending finished goods inventory 56400
Unadjusted cost of goods sold 205160
Add: Underapplied overhead 1040
Adjusted cost of goods sold 206200
Working note :
As the manufacturing overhead cost applied is less than the manufacturing overhead cost incurred, the overhead is underapplied.
Manufacturing overhead cost incurred 42440
Less: Manufacturing overhead cost applied to work in process 41400
Underapplied overhead 1040
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