In: Accounting
The following data have been taken from the accounting records of Graham Corporation for the year ended December 31, 2019. Total manufacturing overhead costs incurred $338,000 Manufacturing overhead applied to Work in Process 345,000 Purchases of raw materials 235,000 Direct labor 135,000 Raw materials inventory - January 1, 2019 10,000 Raw materials inventory - December 31, 2019 15,000 Work in process inventory - January 1, 2019 20,000 Work in process inventory - December 31, 2019 35,000 Finished goods inventory – January 1, 2019 75,000 Finished goods inventory – December 31, 2019 90,000
a. Prepare a Schedule of Cost of Goods Manufactured for the
year.
b. Prepare a Schedule of Cost of Goods Sold for the year.
a) | Cost of goods manufactured for the year | |||||||
Raw materials inventory,january 1,2019 | 10,000 | |||||||
add purchases | 235,000 | |||||||
Raw materials available | 245,000 | |||||||
Raw materials inventory,December 31,2019 | 15,000 | |||||||
Raw materials used | 230,000 | |||||||
Direct labor | 135,000 | |||||||
Manufacturing overhead | 345,000 | |||||||
total manufacturing cost | 710,000 | |||||||
Work in process inventory,January 1,2019 | 20,000 | |||||||
total manufacturing cost and work in process | 730,000 | |||||||
Work in process inventory,december 31,2019 | 35,000 | |||||||
Cost of goods manufactured for the year | 695,000 | |||||||
b) | Cost of goods sold for the year | |||||||
Finished goods inventory,January 1,2019 | 75,000 | |||||||
Add cost of goods manufactured for the year | 695,000 | |||||||
cost of goods available for sale | 770,000 | |||||||
Finished goods inventory,december 31,2019 | 90,000 | |||||||
Unadjusted cost of goods sold | 680,000 | |||||||
less overhead overapplied | 7000 | |||||||
Adjusted cost of goods sold | 673,000 | |||||||