Question

The following data were taken from the records of Oriole Company for the fiscal year ended June 30, 2020.

Raw Materials Inventory 7/1/19		$57,500		Factory Insurance		$4,900
Raw Materials Inventory 6/30/20		41,500		Factory Machinery Depreciation		17,000
Finished Goods Inventory 7/1/19		96,300		Factory Utilities		31,100
Finished Goods Inventory 6/30/20		22,100		Office Utilities Expense		8,550
Work in Process Inventory 7/1/19		21,300		Sales Revenue		561,300
Work in Process Inventory 6/30/20		28,200		Sales Discounts		4,300
Direct Labor		142,650		Plant Manager’s Salary		65,100
Indirect Labor		26,760		Factory Property Taxes		9,610
Accounts Receivable		29,900		Factory Repairs		1,500
				Raw Materials Purchases		99,400
				Cash		42,100

1. Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.)

Accounts/dates to choose from:

Cost of Goods ManufacturedDirect LaborDirect MaterialsDirect Materials UsedFactory Machinery DepreciationFactory InsuranceFactory Property TaxesFactory RepairsFactory UtilitiesIndirect LaborManufacturing OverheadPlant Manager’s SalaryRaw Materials Inventory, July 1, 2019Raw Materials Inventory, June 30, 2020Raw Materials PurchasesTotal Cost of Work in Process InventoryTotal Manufacturing CostsTotal Manufacturing OverheadTotal Raw Materials Available for UseWork in Process Inventory, July 1, 2019Work in Process Inventory, June 30, 2020Finished Goods Inventory, July 1, 2019Finished Goods Inventory, June 30, 2020Office Utilities ExpenseSales RevenueAccounts ReceivableSales DiscountsCash

2. Prepare an income statement through Gross Profit.

3. Prepare the current assets section of the balance sheet at June 30 2020

Answer 1

Solution:

1)

Oriole company cost of goods manufactured schedue for the year ended June 30,2020
Work in process (7/1/19)			$21,300
Direct materials:
Raw materials inventory(7/1/19)	$57,500
Raw materials purchases	$99,400
Total raw materials available for use	$156,900
Less: Raw materials inventory (6/30/20)	($41,500)
Direct materials used		$115,400
Direct labor		$142,650
Manufacturing overhead:
Plant manager's salary	$65,100
Factory utilities	$31,100
Indirect labor	$26,760
Factory machinery depreciation	$17,000
Factory property taxes	$9,610
Factory insurnace	$4,900
Factory repairs	$1,500
Total manufacturing overhead		$155,970
Total manufacturing costs			$414,020
Total cost of work in process			$435,320
Less: Work in process (6/30/20)			($28,200)
Cost of goods manufactued			$407,120

2)

Oriole company Income statement (partial) for the year ended June 30,2020
Sales revenue	$561,300
Less: Sales discount	($4,300)
Net sales		$557,000
Cost of goods sold
Finished goods inventory (July 1 ,2019	$96,300
Add: Cost of goods manufactured	$407,120
Cost of goods available for sale	$503,420
Less: Finished goods inventory (June 30,2020)	($22,100)
Cost of goods sold		$481,320
Gross profit		$75,680

3)

Oriole company Balance sheet (partial) June 30,2020
Current assets		$42,100
Cash		$29,900
Accounts receivable
Inventories:
Finished goods	$22,100
Work in process	$28,200
Raw materials	$41,500
		$91,800
Total current assets		$163,800

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