Question

Lopez Manufacturing Company had the following account balances for the quarter ending June 30, unless otherwise noted:

      Work-in-process inventory (April 1)                $ 149,300

      Work-in-process inventory (March 31)               181,700

      Finished goods inventory (January 1)                 550,000

      Finished goods inventory (March 31)                 513,000

      Direct materials used                                           391,000

      Indirect materials used                                          96,000

      Direct manufacturing labor                                 494,000

      Indirect manufacturing labor                               212,000

      Property taxes on manufacturing plant building   35,700

      Salespersons' company car costs                           19,000

      Depreciation of manufacturing equipment          287,200

      Depreciation of office equipment                        137,400

      Miscellaneous plant overhead                             133,100

      Plant utilities                                                        129,000

      General office expenses                                       301,000

      Marketing distribution costs                                  51,800

Required:

a.   Prepare a cost of goods manufactured schedule for the quarter.

b.   Prepare a cost of goods sold schedule for the quarter.

Answer 1

Lopez Manufacturing Company
Cost of goods Manufactured Schedule
Quarter ended June 30
Beginning Work In progress, april 1		149,300
Direct materials used	391,000
Direct Labour	4,94,000
Manufacturing Overhead:
Indirect materials used	96,000
Indirect Manufacturing labour	212,000
Property taxes on manufacturing plant building	35,700
Depreciation of manufacturing equipment	287,200
Miscellaneous Plant overhead	133,100
Plant utilities	129,000
Total Manufacturing costs incurred		1,778,000
Total manufacturing costs		1,927,300
Less :Ending Work In progress, March 31		-1,81,700
Cost Goods Manufactured		1,754,600
Lopez Manufacturing Company
Cost of goods Sold Schedule
Quarter ended June 30
Cost Goods Manufactured	1,754,600
Add : Beginning Finished Goods, lJanuary 1	5,50,000
Finished Goods Available for Sale	2,304,600
Less: Ending Finished Goods, March 31	(-5,13,000)
Cost of Goods Sold	1,791,600