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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 2 years ago
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