Question

Exercise 14-12 a-b (Video) Marigold Corporation has the following cost records for June 2020. Indirect factory labor Direct materials used Work in process, 6/1/20 Work in process, 6/30/20 Finished goods, 6/1/20 Finished goods, 6/30/20 $5,490 21,980 3,250 4,400 5,550 7,830 Factory utilities Depreciation, factory equipment Direct labor Maintenance, factory equipment Indirect materials Factory manager's salary $490 1,500 42,400 1,880 2,930 3,770 Prepare a cost of goods manufactured schedule for June 2020. MARIGOLD CORPORATION Cost of Goods Manufactured Schedule For the Month Ended June 30, 2020 V Work in Process Inventory, June 1 v 3250 Direct Materials Used 21980 Direct Labor 42400 Manufacturing Overhead Indirect Labor 5490 Indirect Materials 2930 Factory Manager's Salary 3770 Maintenance, Factory Equipment 1880 Depreciation, Factory Equipment 1500 Factory Utilities 490 Total Manufacturing Overhead 16060
Please show work on how to calculate Cost of Goods Available for Sale and Cost of Goods Manufactured!

Answer 1

MARIGOLD CORPORATION
Cost of Goods Manufactured Schedule
Fot the Month Ended June 30, 2020
Work in process inventory, June 1			$3,250
Direct Materials used		$21,980
Direct labor		$42,400
Manufacturing Overhead:
Indirect labor	$5,490
Indirect material	$2,930
Factory manager's salary	$3,770
Maintenance, Factory equipment	$1,880
Depreciation, Factory equipment	$1,500
Factory utilities	$490
Total manufacturing overhead		$16,060
Total manufacturing costs                          [$21,980 + $42,400 + $16,060]			$80,440
Total Cost of work in Process                    [$3,250 + $80,440]			$83,690
Less: Work in process inventory, June 30			$4,400
Cost of Goods Manufactured			$79,290

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MARIGOLD CORPORATION
Income Statment
Fot the Month Ended June 30, 2020
Sales revenue.		$89,230
Cost of goods sold:
Finished goods inventory, June 1	$5,550
Cost of Goods Manufactured                       [Refer Cost of Goods Manufactured schedule]	$79,290
Cost of Goods Available for Sale               [$5,550 + $79,290]	$84,840
Less: Finished goods inventory, June 30	$7,830
Cost of goods sold		$77,010
Gross profit on sales                                       [$89,230 - $77,010]		$12,220