Question

At May 31, 2022, the accounts of Oriole Company show the following. 1. May 1 inventories-finished goods $11,080, work in process $12,920, and raw materials $7,200. 2. May 31 inventories-finished goods $8,360, work in process $14,000, and raw materials $6,240. 3. Debit postings to work in process were direct materials $54,920, direct labor $44,000, and manufacturing overhead applied $35,200. (Assume that overhead applied was equal to overhead incurred.) 4. Sales revenue totaled $189,200. Prepare a condensed cost of goods manufactured schedule for May 2022

Answer 1

The cost of goods manufactured for Oriole Company in May 2022 is calculated by adding the beginning work in process inventory to the total manufacturing costs for May and then subtracting the ending work in process inventory, resulting in a final figure of $133,040.

Step-by-step explanation:

Cost of Goods Manufactured Schedule

To prepare a condensed cost of goods manufactured schedule for the month of May 2022 for Oriole Company, the following calculation is performed:

• Beginning Work in Process Inventory (May 1): $12,920
• Plus: Total Manufacturing Costs for May:
• Total Manufacturing Costs: $134,120
• Total Work in Process for May: $147,040 ($12,920 + $134,120)
• Less: Ending Work in Process Inventory (May 31): $14,000
• Cost of Goods Manufactured: $133,040 ($147,040 - $14,000)

This figure represents the total manufacturing costs associated with the goods that were completed during May 2022.

Answer 2

To create the condensed cost of goods manufactured schedule, we sum the beginning work in process with direct materials used, direct labor, and manufacturing overhead, then subtract the ending work in process to find the cost of goods manufactured for May 2022, which is $133,040.

Step-by-step explanation:

To prepare a condensed cost of goods manufactured schedule for May 2022, we start by calculating the costs involved in the production process. The total manufacturing costs added during the month include the costs of direct materials, direct labor, and manufacturing overhead. This total is combined with the beginning work in process and then reduced by the ending work in process to yield the cost of goods manufactured.

Cost of Goods Manufactured Schedule (Condensed)

• Beginning work in process inventory (May 1): $12,920
• Add: Direct materials used: $54,920
• Add: Direct labor: $44,000
• Add: Manufacturing overhead: $35,200
• Total manufacturing costs: $134,120
• Total cost to account for: $147,040
• Less: Ending work in process inventory (May 31): $14,000
• Cost of goods manufactured: $133,040