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
112,000
Ending inventories, March 31:
Raw material
26,000
Work...
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
112,000
Ending inventories, March
31:
Raw material
26,000
Work...
O'Reilly Manufacturing Co.'s cost of goods sold for the month ended July 31 was $345,000. The...
O'Reilly Manufacturing Co.'s cost of goods sold for the month
ended July 31 was $345,000. The ending work in process inventory
was 90% of the beginning work in process inventory. Factory
overhead was 50% of the direct labor cost. No indirect materials
were used during the period. Other information pertaining to
O'Reilly's inventories and production for July is as follows:
Required: 1. Prepare a statement of cost of goods manufactured for
the month of July. (Hint: Set up a statement...
Beginning goods in process inventory (March 31) Units of product  
Beginning goods in process inventory (March 31)
Units of
product
30,000 units
Percentage of completion – Direct
materials
100%
Percentage of completion – Direct
labor
65%
Direct materials
costs
$4,300
Direct labor
costs
$ 700
Factory overhead costs applied
$ 920
Activities during the current period (April)
Units started this
period
90,000 units
Units transferred out
(completed)
100,000 units
Direct materials
costs
$ 12,900
Direct labor
costs
$ 6,700
Factory overhead costs applied
$ 7,680...
1. To adjust a company’s LIFO cost of goods sold to FIFO cost of goods sold...
1.
To adjust a company’s LIFO cost of goods sold to FIFO cost of
goods sold
the ending LIFO reserve is added to LIFO cost of goods sold.
the ending LIFO reserve is subtracted from LIFO cost of goods
sold.
an increase in the LIFO reserve is subtracted from LIFO cost of
goods sold.
a decrease in the LIFO reserve is subtracted from LIFO cost of
goods sold.
2.
All of the following statements are true regarding the LIFO
reserve...
Calculation of Cost of Goods Sold: Periodic Inventory System Prepare the cost of goods sold section...
Calculation of Cost of Goods Sold: Periodic Inventory System
Prepare the cost of goods sold section for Adams Gift Shop. The
following amounts are known: Beginning merchandise inventory
$27,050 Ending merchandise inventory 22,550 Purchases 77,125
Purchases returns and allowances 4,055 Purchases discounts 5,745
Freight-in 230 Adams Gift Shop Cost of Goods Sold Cost of goods
sold: $ $ $ $ $ Cost of goods sold $
Aiello, Inc. had the following inventory in fiscal 2016. Compute the company’s cost of goods sold...
Aiello, Inc. had the following
inventory in fiscal 2016. Compute the company’s cost of goods sold
for fiscal 2016 assuming the company used a) FIFO and b) LIFO
methods of accounting for inventory:
Beginning Inventory, January 1, 2016:
130 units @ $15.00
Purchase 200 units @ $18.00
Purchase 50 units @ $13.50
Purchase 110 units @ $15.75
Ending Inventory, December 31, 2016:
120 units
What is the Cost of Goods Sold for the Mar 31 st sale under FIFO inventory costing?
Sport Box sells a wide variety of sporting equipment. The following is information on the purchases and sales of their top selling hockey stick. The hockey stick sells for $130 and had transactions as follows:
Mar 1st beginning inventory 5 units at $30 per unit
Mar 3rd sold 3 units
Mar 6th purchased inventory 30 units at $40 per unit
Mar 17th sold 20 units
Mar 23rd purchased inventory 25 units at $50 per unit
Mar 31st sold...
The adjustment for overhead that is over- or under-allocated can occur in Work in Process in Cost of Goods Sold
The adjustment for overhead that is over- or under-allocated can occurin Work in Processin Cost of Goods Soldin Finished Goods, Cost of Goods Sold, or Work in Processin Cost of Goods Sold and Work In Process, but not in Finished Goodsin Finished Goods Inventory
Periodic inventory by three methods; cost of goods sold
Periodic inventory by three methods; cost of goods soldThe units of an item available for sale during the year were as follows:Jan. 1Inventory180units at $108Mar. 10Purchase224units at $110Aug. 30Purchase200units at $116Dec. 12Purchase196units at $120There are 208 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the ending inventory cost and the cost of goods sold by three methods.Cost of Inventory and Cost of Goods SoldInventory MethodEnding InventoryCost of Goods SoldFirst-in, first-out...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Project [2]: Expressions and Operators Project Goals The goal of this project is to: 1. Get...
- Why is public participation important in a community development effort? Research some local efforts at public...
- Using fuel/ air ratios. Find the values to fill in the following combustion reaction chart. Note:...
- Explain why this segmentation strategy works for BMW. (10)
- 2. Do you think a firm operating in many countries is better advised to adopt a...
- 1. Anna knows that she is fat, she should work out but she is often lazy...
- n object with mass 100 kg moved in outer space. When it was at location <6,...
ADVERTISEMENT