Question

Bledseo Corporation has provided the following data for the month of June:

	Beginning		Ending
Raw materials	$	26,700	$	22,700
Work in process	$	18,700	$	11,700
Finished Goods	$	49,700	$	57,700

Additional information:

Raw materials purchases	$	73,700
Direct labor cost	$	93,700
Manufacturing overhead cost incurred	$	43,870
Indirect materials included in manufacturing overhead cost incurred	$	4,170
Manufacturing overhead cost applied to Work in Process	$	42,700

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

Bledseo Corporation
Schedule of Cost of Goods Manufactured
Direct Material
Raw material Inventory Beginning	$ 26,700
Raw material Purchased	$ 69,530
Raw material available for use	$ 96,230
Less: Raw material Inventory Ending	$ 22,700
Direct Material Used		$ 73,530
Direct labor		$ 93,700
Manufacturing Overhead applied		$ 42,700
Total manufacturing Cost During the month		$ 209,930
Add: Work in process Beginning		$ 18,700
Total Work in Process		$ 228,630
Less: Work in progress Ending		$ 11,700
Cost of Goods Manufactured		$ 216,930

.

Bledseo Corporation
Schedule of cost of goods sold
Beginning Finished Goods Inventory		$ 49,700
Add: Cost of goods manufactured		$ 216,930
Goods Available for sale		$ 266,630
Less :Ending Finished goods Inventory		$ 57,700
Unadjusted Cost of Goods Sold		$ 208,930
Underapplied Manufacturing overheads		$ 1,170
Adjusted cost of goods sold		$ 210,100