Question

Bledsoe Corporation has provided the following data for the month of November:

	Beginning		Ending
Raw materials	$	26,500	$	22,500
Work in process	$	18,500	$	11,500
Finished Goods	$	49,500	$	57,500

Additional information:

Raw materials purchases	$	73,500
Direct labor cost	$	93,500
Manufacturing overhead cost incurred	$	43,650
Indirect materials included in manufacturing overhead cost incurred	$	4,150
Manufacturing overhead cost applied to Work in Process	$	42,500

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

Bledsoe Corporation
Schedule of Cost of Goods Manufactured
Direct Material
Raw material Inventory Beginning	$     26,500.00
Raw material Purchased	$     73,500.00
Raw material available for use	$ 1,00,000.00
Less: Raw material Inventory Ending	$     22,500.00
Direct Material Used		$     77,500.00
Direct labor		$     93,500.00
Manufacturing overheads applied		$     42,500.00
Total manufacturing Cost incurred during the period		$ 2,13,500.00
Add: Work in process Beginning		$     18,500.00
Total Manufacturing cost to account for		$ 2,32,000.00
Less: Work in process Ending		$     11,500.00
Cost of Goods Manufactured		$ 2,20,500.00

Bledsoe Corporation
Schedule of cost of goods sold
Beginning Finished Goods Inventory		$        49,500.00
Cost of Goods manufactured		$    2,20,500.00
Goods Available for sale		$    2,70,000.00
Less :Ending Finished goods Inventory		$        57,500.00
Unadjusted Cost of Goods Sold		$    2,12,500.00
Underapplied Manufacturing Overheads		$          1,150.00
Adjusted Cost og Goods sold		$    2,13,650.00