Question

Dickerson Corporation has provided the following data for the month of April:

Inventories:	Beginning				Ending
Raw materials	$	21,000			$	35,000
Work-in-Process	$	17,000			$	19,000
Finished goods	$	46,000			$	38,000

Additional information:
Raw materials purchases	$	76,000
Direct labor cost	$	81,000
Manufacturing overhead cost incurred	$	42,000
Indirect materials included in manufacturing overhead cost incurred	$	6,000
Manufacturing overhead cost applied to Work-in-Process	$	44,000

Required:

Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold in good form.

Answer 1

	Schedule of Cost of Goods Manufactured
Direct materials:
Raw materials inventory, beginning	21000
Add: Purchases of raw materials	76000
Total raw materials available	97000
Deduct: Raw materials inventory, ending	35000
Raw materials used in production	62000
Deduct: Indirect materials used	6000	56000
Direct labor cost		81000
Manufacturing overhead applied to work in process inventory		44000
Total manufacturing costs		181000
Add: Beginning work in process inventory		17000
		198000
Deduct: Ending work in process inventory		19000
Cost of goods manufactured		179000
	Schedule of Cost of Goods Sold
Finished goods inventory, beginning	46000
Add: Cost of goods manufactured	179000
Cost of goods available for sale	225000
Deduct: Finished goods inventory, ending	38000
Unadjusted cost of goods sold	187000
Deduct: Overapplied overhead	2000	(44000-42000)
Adjusted cost of goods sold	185000