Question

In: Accounting

Beginning Ending Raw materials $45,000 $51,000 Work in process $66,000 $74,000 Finished goods $38,000 $27,000 Raw...

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:

Solutions

Expert Solution

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.


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