Question
In: Accounting
Marco Polo Map Company’s cost of goods sold for March was $345,000. March 31 work-in-process inventory...
Marco Polo Map Company’s cost of goods sold for March was
$345,000. March 31 work-in-process inventory was 90 percent of
March 1 work-in-process inventory. Manufacturing overhead applied
was 50 percent of direct-labor cost. Other information pertaining
to the company’s inventories and production for the month of March
is as follows:
|
Beginning inventories, March 1: |
|||
|
Raw material |
$ |
16,000 |
|
|
Work in process |
40,000 |
||
|
Finished goods |
102,000 |
||
|
Purchases of raw material during March |
114,000 |
||
|
Ending inventories, March 31: |
|||
|
Raw material |
26,000 |
||
|
Work in process |
? |
||
|
Finished goods |
105,000 |
||
Required:
1. Prepare a schedule of cost of goods manufactured for the month of March.
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Solutions
Expert Solution
Solution:
Cost of goods manufactured = Cost of goods Sold + Ending Finished goods inventory - beginning Finished Goods inventory
= $345,000 +$105,000 - $102,000 = $348,000
Ending WIP = Beginning WIP *90% = $40,000*90% = $36,000
Total Manufacturing costs = Cost of goods manufactured +Ending WIP - Begining WIP = $348000+ $36000 - $40000 = $344,000
| MARCO POLO MAP COMPANY | ||
| Schedule of cost of goods manufactured | ||
| For the month of March | ||
| Particulars | Amount | |
| Direct Material: | ||
| Raw Material Inventory, March 1 | $16,000.00 | |
| Add: Purchases during march | $1,14,000.00 | |
| Raw Material Available for use | $1,30,000.00 | |
| Less: Raw Material Inventory, March 31 | $26,000.00 | |
| Raw Material Used | $1,04,000.00 | |
| Direct Labor [($344000 -$104000)/150%] | $1,60,000.00 | |
| Manufacturing Overhead Applied ($160000*50%) | $80,000.00 | |
| Total Manufacturing costs | $3,44,000.00 | |
| Add: Opening WIP | $40,000.00 | |
| Subtotal | $3,84,000.00 | |
| Less: ending WIP | $36,000.00 | |
| Cost of goods manufactured | $3,48,000.00 | |
ekkarill92 answered 1 year agoRelated Solutions
Marco Polo Map Company’s cost of goods sold for March was $345,000. March 31 work-in-process inventory...
Marco Polo Map Company’s cost of goods sold for March was
$345,000. March 31 work-in-process inventory was 90 percent of
March 1 work-in-process inventory. Manufacturing overhead applied
was 50 percent of direct-labor cost. Other information pertaining
to the company’s inventories and production for the month of March
is as follows:
Beginning inventories, March 1:
Raw material
$
18,000
Work in process
40,000
Finished goods
102,000
Purchases of raw material during March
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Ending inventories, March 31:
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Marco Polo Map Company’s cost of goods sold for March was $345,000. March 31 work-in-process inventory...
Marco Polo Map Company’s cost of goods sold for March was
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March 1 work-in-process inventory. Manufacturing overhead applied
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to the company’s inventories and production for the month of March
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