Question

PROBLEM. 1) Bledsoe Corporation has provided the following data for the month of November: Inventories: Beginning Ending Raw materials $ 26,100 $ 22,100 Work in process $ 18,100 $ 11,100 Finished Goods $ 49,100 $ 57,100 Additional information: Raw materials purchases $ 73,100 Direct labor cost $ 93,100 Manufacturing overhead cost incurred $ 43,210 Indirect materials included in manufacturing overhead cost incurred $ 4,110 Manufacturing overhead cost applied to Work in Process $ 42,100 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.

Required: Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold.

Answer 1

Solution

Bledsoe Corporation
Schedule of Cost of Goods Manufactured
For the current year
Direct Material
Direct material Inventory Beginning	$        26,100.00
Direct material Purchased	$        68,990.00
Direct material available for use	$        95,090.00
Less: Direct material Inventory Ending	$        22,100.00
Direct Material Used		$         72,990.00
Direct labor		$         93,100.00
Total Manufacturing Overheads Applies		$         42,100.00
Total manufacturing Cost incurred during the period		$      208,190.00
Add: Work in process Beginning		$         18,100.00
Total Work in process		$      226,290.00
Less: Work in progress Ending		$         11,100.00
Cost of Goods Manufactured		$      215,190.00

.

Bledsoe Corporation
Schedule of cost of good sold
Beginning Finished Goods Inventory		$         49,100.00
Cost of Goods manufactured		$      215,190.00
Goods Available for sale		$      264,290.00
Less :Ending Finished goods Inventory		$         57,100.00
Unadjusted Cost of Goods Sold		$      207,190.00
Under-applied Manufacturing Overheads		$           1,110.00
Adjusted Cost of Goods sold		$      208,300.00