Question

An analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended June 30, 2017.

Inventory	Beginning	Ending
Raw materials	$9,000	$13,100
Work in process	5,000	7,000
Finished goods	9,000	8,000

Costs incurred: raw materials purchases $54,000, direct labor $47,000, manufacturing overhead $19,900. The specific overhead costs were: indirect labor $5,500, factory insurance $4,000, machinery depreciation $4,000, machinery repairs $1,800, factory utilities $3,100, and miscellaneous factory costs $1,500. Assume that all raw materials used were direct materials. Instructions (a) Prepare the cost of goods manufactured schedule for the month ended June 30, 2017. (b) Show the presentation of the ending inventories on the June 30, 2017, balance sheet.

Answer 1

a

ROBERTS COMPANY
Cost of Goods Manufactured Schedule
For the month ended June 30, 2017
Work in Process Inventory, June 1			5,000.00
Direct Materials
Raw Materials Inventory, June 1	9,000.00
Raw Materials Purchase	54,000.00
Total Raw Materials Available for use	63,000.00
Less: Raw Materials Inventory June 30	- 13,100.00
Direct Materials Used		49,900.00
Direct Labor		47,000.00
Manufacturing Overhead
Indirect Labor	5,500.00
Factory Insurance	4,000.00
Machinery Depreciation	4,000.00
Factory Utilities	3,100.00
Machinery Repairs	1,800.00
Miscellaneous Factory Costs	1,500.00
Total Manufacturing Overhead		19,900.00
Total Manufacturing costs			116,800.00
Total Cost of work in Process			121,800.00
Less: Work in Process inventory June 30			-      7,000.00
Cost of Goods Manufactured			114,800.00

b)

ROBERTS COMPANY
Partial Balance Sheet
June 30,2017
Current Assets
Inventory
Finished Goods	8,000.00
Work in Process	7,000.00
Raw Materials	13,100.00
		28,100.00