Question

An analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended June 30, 2020.

Inventory		Beginning		Ending
Raw materials		$ 9,660		$ 13,620
Work in process		5,100		8,710
Finished goods		9,870		6,640

Costs incurred: raw materials purchases $ 57,250, direct labor $ 51,410, manufacturing overhead $22,900. The specific overhead costs were: indirect labor $ 6,160, factory insurance $ 4,610, machinery depreciation $ 4,920, machinery repairs $ 2,230, factory utilities $ 3,210, and miscellaneous factory costs $ 1,770. Assume that all raw materials used were direct materials.

(a) Prepare the cost of goods manufactured schedule for the month ended June 30, 2020.

(b) Show the presentation of the ending inventories on the June 30, 2020, balance sheet.

Answer 1

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a. Cost of Goods Manufactured
Direct materials costs
-Beginning inventory		$    9,660
- Purchases of direct materials		$ 57,250
-Cost of direct materials available for use		$ 66,910
Ending inventory		$ -13,620
Direct Material Used			$ 53,290
Direct manufacturing labor costs			$ 51,410
Indirect manufacturing labor costs
-Indirect manufacturing labor		$    6,160
-Factory Insurance		$    4,610
Machinery Dep		$    4,920
-Machinery Repairs		$    2,230
-'Factory Utilities		$    3,210
-Misc Factory Cost		$    1,770	$ 22,900
Manufacturing costs incurred			$127,600
Add beginning work-in-process inventory			$    5,100
Total manufacturing costs to account for			$132,700
Less Ending WIP			$   -8,710
Cost of Goods Manufactured			$123,990
b. Ending Inventory
Current Assets:
Raw Material	$ 13,620
Work in Process	$    8,710
Finished Goods	$    6,640