SHOW LIST OF ACCOUNTS SHOW LIST OF ACCOUNTS At May 31 2017 t

SHOW LIST OF ACCOUNTS

SHOW LIST OF ACCOUNTS

At May 31, 2017, the accounts of Lopez Company show the following. 1. May 1 inventories—finished goods $13,600, work in process $15,800, and raw materials $9,200. 2. May 31 inventories—finished goods $9,700, work in process $17,600, and raw materials $7,900. 3. Debit postings to work in process were direct materials $64,700, direct labor $52,300, and manufacturing overhead applied $41,600. 4. Sales revenue totaled $216,200.

Solution

1 LOPEZ COMPANY Cost of Goods Manufactured Schedule For the Month Ended May 31, 2017 Work in process, May 1 $15,800 Direct materials used $64,700 Direct labor $52,300 Manufacturing overhead applied $41,600 Total manufacturing costs $158,600 Total cost of work in process $174,400 Less: Work in process, May 31 $17,600 Cost of goods manufactured $156,800 2 LOPEZ COMPANY (Partial) Income Statement For the Month Ended May 31, 2017 Sales $216,200 Cost of goods sold Finished goods, May 1 $13,600 Cost of Goods manufactured $156,800 Cost of goods available for sale $170,400 Finished goods, May 31 $9,700 Cost of goods sold $160,700 Gross profit $55,500