Question

In: Accounting

The following data from the Oasis Corporation is below: Sales $              640,000 Direct Labor Cost 90,000...

The following data from the Oasis Corporation is below:
Sales $              640,000
Direct Labor Cost 90,000
Raw Material Purchases 132,000
Manufacturing Overhead applied to WIP 210,000
Actual Manufacturing Overhead costs 220,000
Administrative Salaries 38,000
Depreciation Expense - Office 15,000
Marketing Expense 22,000
Rent Expense - Office 34,000
Sales Salaries 35,000
Sales Commissions 12,000
Direct Materials, beginning balance 8,000
Direct Materials, ending balance 10,000
Work in Process, beginning balance 5,000
Work in Process, ending balance 20,000
Finished Goods, beginning balance 70,000
Finished Goods, ending balance 25,000

Prepare a schedule of cost of goods sold

Solutions

Expert Solution

Schedule of Cost of goods sold

Direct materials:

Direct Materials, beginning balance

8,000

Add: Purchases of raw material

132,000

Total raw materials available

140,000

Direct Materials, ending balance

- 10,000

Raw materials used in production

130,000

Direct labor

90,000

Manufacturing overhead applied to work in process

210,000

Total manufacturing cost

430,000

Add: Beginning work in process inventory

5,000

Less: Ending work in process inventory

- 20,000

Cost of goods manufactured

415,000

Finished Goods, beginning balance 70,000
Cost of goods available for sale 485,000
Finished Goods, ending balance - 25,000
Unadjusted cost of goods sold 460,000
Under applied Manufacturing Overhead 10,000
Adjusted cost of goods sold 470,000

Manufacturing Overhead applied to WIP = $210,000

Actual Manufacturing Overhead costs = $220,000

Under applied Manufacturing Overhead = Actual Manufacturing Overhead costs - Manufacturing Overhead applied to WIP

= 220,000 - 210,000

= $10,000


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