Question

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

	Beginning		Ending
Raw materials	$	25,900	$	21,900
Work in process	$	17,900	$	10,900
Finished Goods	$	48,900	$	56,900

Additional information:

Raw materials purchases	$	72,900
Direct labor cost	$	92,900
Manufacturing overhead cost incurred	$	42,990
Indirect materials included in manufacturing overhead cost incurred	$	4,090
Manufacturing overhead cost applied to Work in Process	$	41,900

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

Particulars	Details	Amount
Direct Materials
Beginning Inventory of Direct Material	$25,900
Add: Purchases	72900
Inventory available for use	98800
Less: Ending Inventory of Direct Material	21900
Raw Material Used in production	76900
Less: Indirect Material Used	4090	$72,810
Direct Labor		92900
Applied Factory Overhead		41900
Total Manufacturing Costs		$207,610
Add: Beginning inventory for Work In Process		17900
Total Cost of Work In Process Inventory		$225,510
Less: Ending Inventory of Work In Process		10,900
Total Cost of Goods Manufactured		$214,610
Cost of Goods Sold:
Beginning Finished Goods Inventory		$48,900
Add: Cost of Goods Manufactured		214,610
Cost of Goods Available for sale		$263,510
Less: Closing Inventory of Finished Goods		56,900
Un-adjusted Cost of Goods Sold		$206,610
Add: Under Applied Overheads (42,990 - 41900)		1090
Adjusted Cost of Goods Sold		$207,700