Inventories Beginning 25000 16000 Ending Raw materials 35000

Inventories Beginning $25,000 $16,000 Ending Raw materials $35,000 Work in process $18,000 Finished goods $36,000 $59,000 Additional information Raw materials purchases $71,000 Direct labor cost $83,000 Manufacturing overhead cost incurred $74,000 Manufacturing overhead cost applied to Work in Process $71,000 Required: Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold

Solution

Cost of goods manufactured Beginning raw materials 25,000 add purchases 71,000 raw materials available 96,000 less ending raw materials 35,000 raw materials used 61,000 Direct labor cost 83,000 manufacturing overhead cost applied 71,000 total manufacturing cost 215,000 Add:Beginning work in process 16,000 231,000 less Ending work in process 18,000 cost of goods manufactured 213,000 Cost of goods sold beginning finished goods 36,000 add:cost of goods manufactured 213,000 Cost of goods avaialble for sale 249,000 less ending finished goods inventory 59,000 unadjusted cost of goods sold 190,000 Add:under applied overhead 3,000 adjusted cost of goods sold 193,000