Question

At May 31, 2017, the accounts of Lopez Company show the following 1. May 1 inventories - finished goods $12,600, work in process $14,700 a 2. May 31 inventories-finished goods $9,500, work in process, $15,900, and raw nd raw materials $8.200 materials $7,100 Debit postings to work in process were direct materials, 562.400, direct labor $50,0o0 and manufacturing overhead applied $40,000 4. Sales revenue totaled $215,000. 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 NOTE: Enter a number in cells requesting a value; enter either a number or a formula in l(a) Prepare a condensed cost of goods manufactured schedule LOPEZ COMPANY Cost of Goods Manufactured Schedule For the Month Ended May 31, 2017 Value, Work in process, May 1 Direct materials used Direct labor Manufacturing overhead applied Value U2 Value s0,bo0 Value o,o0D Total manufacturing costs Total cost of work in process Less: Work in process, May 31 Cost of goods manufactured Value

Answer 1

a)
Cost of Goods Manufactured Schedule:
		Amount $
WIP May1		14700
DM used	62400
DL	50000
Manuf O/h applied	40000
Total Manufacturing costs		152400
Total cost of WIP		167100
Less: WIP May31		-15900
Cost of goods Manufactured		151200
b)
Income statement for May through GP:
Sales		215000
Cost of Goods sold:
Finished Goods May1	12600
add: COGM	151200
Cost of goods available for sale	163800
Less:Finished Goods May31	-9500
Cost of goods sold		154300
Gross Profit		60700
c) Presentation of the manufacturing inventories May 31:
Partial Balance Sheet:
Current Assets:
Finished Goods inventory	9500
Work in process inventory	15900
Raw Material inventory	7100	32500