Question
In: Accounting
Marco Polo Map Company’s cost of goods sold for March was $345,000. March 31 work-in-process inventory...
Marco Polo Map Company’s cost of goods sold for March was
$345,000. March 31 work-in-process inventory was 90 percent of
March 1 work-in-process inventory. Manufacturing overhead applied
was 50 percent of direct-labor cost. Other information pertaining
to the company’s inventories and production for the month of March
is as follows:
| Beginning inventories, March 1: | |||
| Raw material | $ | 18,000 | |
| Work in process | 40,000 | ||
| Finished goods | 102,000 | ||
| Purchases of raw material during March | 112,000 | ||
| Ending inventories, March 31: | |||
| Raw material | 26,000 | ||
| Work in process | ? | ||
| Finished goods | 105,000 | ||
Required:
1. Prepare a schedule of cost of goods manufactured for the month of March.
Solutions
Expert Solution
| Schedule of Cost of Goods manufactured | |||||||
| Particulars | Amount | ||||||
| Raw material inventory 1 march | $ 18,000.00 | ||||||
| add: purchase of raw material | $ 1,12,000.00 | ||||||
| raw material available for use | $ 1,30,000.00 | ||||||
| less: raw material inventory 31 march | $ 26,000.00 | ||||||
| Raw material used | $ 1,04,000.00 | ||||||
| Direct labour(344000-104000)*150% | $ 1,60,000.00 | ||||||
| manufacturing overhead (160000*50%) | $ 80,000.00 | ||||||
| total manufacturing cost | $ 3,44,000.00 | ||||||
| add: opening WIP | $ 40,000.00 | ||||||
| less: closing WIP | $ 36,000.00 | ||||||
| Cost of goods manufactured | $ 3,48,000.00 | ||||||
| Cost of goods manufactured= Cost of goods sold +ending finished goods-beginning finished goods | |||||||
| 345000+105000-102000= 348000 | |||||||
| Ending WIP = 90%*40000=36000 | |||||||
| Total manufacturing cost = Cost of goods manufactured+ending WIP-BeginningWip | |||||||
| 348000+36000-40000 = 344000 | |||||||
ekkarill92 answered 3 years agoRelated Solutions
Marco Polo Map Company’s cost of goods sold for March was $345,000. March 31 work-in-process inventory...
Marco Polo Map Company’s cost of goods sold for March was
$345,000. March 31 work-in-process inventory was 90 percent of
March 1 work-in-process inventory. Manufacturing overhead applied
was 50 percent of direct-labor cost. Other information pertaining
to the company’s inventories and production for the month of March
is as follows:
Beginning inventories, March 1:
Raw material
$
18,000
Work in process
40,000
Finished goods
102,000
Purchases of raw material during March
112,000
Ending inventories, March 31:
Raw material
26,000
Work...
Marco Polo Map Company’s cost of goods sold for March was $345,000. March 31 work-in-process inventory...
Marco Polo Map Company’s cost of goods sold for March was
$345,000. March 31 work-in-process inventory was 90 percent of
March 1 work-in-process inventory. Manufacturing overhead applied
was 50 percent of direct-labor cost. Other information pertaining
to the company’s inventories and production for the month of March
is as follows:
Beginning inventories, March 1:
Raw material
$
16,000
Work in process
40,000
Finished goods
102,000
Purchases of raw material during March
114,000
Ending inventories, March 31:
Raw material
26,000
Work...
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