Question

Bledsoe Corporation has provided the following data for the month of November:

	Beginning		Ending
Raw materials	$	26,800	$	22,800
Work in process	$	18,800	$	11,800
Finished Goods	$	49,800	$	57,800

Additional information:

Raw materials purchases	$	73,800
Direct labor cost	$	93,800
Manufacturing overhead cost incurred	$	43,980
Indirect materials included in manufacturing overhead cost incurred	$	4,180
Manufacturing overhead cost applied to Work in Process	$	42,800

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.

Answer 1

SOLUTION

Schedule of Cost of Goods Manufactured

Particulars	Amount ($)	Amount ($)	Amount ($)
Direct Materials:
Beginning Inventory of Direct Material	26,800
Add: Purchases	73,800
Inventory available for use	100,600
Less: Ending Inventory of Direct Material	(22,800)
Raw Material Used in production	77,800
Less: Indirect Material Used	(4,180)	73,620
Direct Labor		93,800
Applied Factory Overhead		42,800
Total Manufacturing Costs			210,220
Add: Beginning inventory for Work In Process			18,800
Total Cost of Work In Process Inventory			229,020
Less: Ending Inventory of Work In Process			(11,800)
Total Cost of Goods Manufactured			217,220

Schedule of Cost of Goods Sold

Particulars	Amount ($)
Beginning Finished Goods Inventory	49,800
Add: Cost of Goods Manufactured	217,220
Cost of Goods Available for sale	267,020
Less: Closing Inventory of Finished Goods	(57,800)
Unadjusted Cost of Goods Sold	209,220
Add: Under Applied Overheads	1,180
Adjusted Cost of Goods Sold	210,400

Under Applied Overheads = Manufacturing overhead cost incurred - Manufacturing overhead cost applied

= $43,980 - $42,800

= $1,180