Bledsoe Corporation has provided the following data for the

Bledsoe Corporation has provided the following data for the month of November: Raw materials Work in process Finished Goods Beginning Ending $ 26,900 $22,900 s18,900 $11,900 $.49,900 57,900 Additional information: Raw materials purchases Direct labor cost Manufacturing overhead cost incurred Indirect materials included in manufacturing overhead cost incurred Manufacturing overhead cost applied to Work in Process $73,900 $93,900 $44,090 4,190 $42,900 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold Required Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold.

Solution

Solution: 1st Bledsoe Corporation Schedule of cost of goods manufactured Direct Materials: Beginning materials inventory 26,900 Add: Purchases of raw materials 73,900 Raw materials available for use 100,800 Deduct: Ending raw materials inventory 22,900 Raw materials used in production 77,900.00 Less indirect materials included in manufacturing overhead incurred 4,190.00 73,710.00 Direct Labor 93,900.00 Manufacturing overhead applied to Work in Process 42,900.00 Total manufacturing costs 210,510.00 Add: Beginning work in process inventory 18,900.00 229,410.00 Deduct: Ending work in process inventory 11,900.00 Cost of goods manufactured 217,510.00 Working Notes: Bledsoe Corporation Schedule of cost of goods manufactured Direct Materials: a Beginning materials inventory 26,900 b Add: Purchases of raw materials 73,900 c=a+b Raw materials available for use 100,800 d Deduct: Ending raw materials inventory 22,900 e=c-d Raw materials used in production 77,900.00 f Less indirect materials included in manufacturing overhead incurred 4,190.00 73,710.00 f=e-f g Direct Labor 93,900.00 h Manufacturing overhead applied to Work in Process 42,900.00 Total manufacturing costs 210,510.00 i=f+g+h Add: Beginning work in process inventory 18,900.00 j 229,410.00 k=i+j Deduct: Ending work in process inventory 11,900.00 l Cost of goods manufactured 217,510.00 m=k-l 2nd Bledsoe Corporation Cost of goods sold Beginning finished goods inventory 49,900 Add: Cost of goods manufactured 217,510 Goods available for sale 267,410 Deduct: Ending finished goods inventory 57,900 Unadjusted cost of goods sold 209,510 Add: Underapplied overhead 1,190 Adjusted cost of goods sold 210,700 Notes: Bledsoe Corporation Cost of goods sold a Beginning finished goods inventory 49,900 b Add: Cost of goods manufactured 217,510 c=a+b Goods available for sale 267,410 d Deduct: Ending finished goods inventory 57,900 e=c-d Unadjusted cost of goods sold 209,510 f Add: Underapplied overhead 1,190 g=e+f Adjusted cost of goods sold 210,700 Underapplied overhead = Manufacturing overhead cost incurred - Manufacturing overhead cost applied to Work in Process =44,090 - 42,900 =$1,190 Please feel free to ask if anything about above solution in comment section of the question.