In: Accounting
Beginning Ending Raw materials $45,000 $51,000 Work in process $66,000 $74,000 Finished goods $38,000 $27,000 Raw materials purchases $88,000 Direct labor cost $94,000 Actual Manufacturing overhead cost incurred $53,000 Indirect materials included in manufacturing overhead cost incurred $13,000 Manufacturing overhead cost applied to Work in Process $52,000 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. The adjusted cost of goods sold that appears on the income statement for July is:
Actual Manufacturing overhead cost = $53,000
Applied manufacturing overhead cost = $52,000
Under applied manufacturing overhead = Actual Manufacturing overhead cost- Applied manufacturing overhead cost
= 53,000-52,000
= $1,000
Cost of Goods Manufactured Schedule | ||
Direct materials: | ||
Raw materials inventory beginning | 45,000 | |
Add: Material purchased | 88,000 | |
Total raw materials available | 133,000 | |
Less: Raw materials inventory ending | -51,000 | |
Raw material used in production | 82,000 | |
Less: Indirect materials used in production | -13,000 | |
Direct materials used in production | 69,000 | |
Direct labor | 94,000 | |
Manufacturing Overheads costs applied | 52,000 | |
Total Manufacturing Costs | 215,000 | |
Add: Work in process inventory, beginning | 66,000 | |
Total cost of work in process | 281,000 | |
Less:Work in process inventory ending | -74,000 | |
Cost of goods manufactured | $207,000 |
Schedule of Cost of Goods Sold | |
Finished goods inventory, beginning | 38,000 |
Cost of goods manufactured | 207,000 |
Cost of goods available for sale | 245,000 |
Finished goods inventory, Ending | -27,000 |
Unadjusted Cost of goods sold | 218,000 |
Under applied manufacturing overhead | 1,000 |
Adjusted Cost of goods sold | $219,000 |
The adjusted cost of goods sold that appears on the income statement for July is:$219,000.