Question

Bledsoe Corporation has provided the following data for the month of November: Beginning Ending Raw materials $ 25,100 $ 21,100 Work in process $ 17,100 $ 10,100 Finished Goods $ 48,100 $ 56,100 Additional information: Raw materials purchases $ 72,100 Direct labor cost $ 92,100 Manufacturing overhead cost incurred $ 42,110 Indirect materials included in manufacturing overhead cost incurred $ 4,010 Manufacturing overhead cost applied to Work in Process $ 41,100 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

Bledsoe Corporation

Schedule of Cost of goods manufactured

Particulars Amount

Direct materials:

Beginning material inventory $25,100.00

Add: Purchases $72,100.00

Raw material available for use $97,200.00

Less: Ending material inventory $21,100.00

Raw material used in production $76,100.00

Less: Indirect material $4,010.00 $72,090.00

Direct labor $92,100.00

Manufacturing overhead applied $41,100.00

Total manufacturing costs $205,290.00

Add: Beginning WIP $17,100.00

Total cost of work in process $222,390.00

Less: Ending WIP $10,100.00

Cost of goods manufactured $212,290.00

Bledsoe Corporation

Schedule of COGS

Particulars Amount

Cost of goods sold:

Beginning finished goods inventory $48,100.00

Add: Cost of goods manufactured $212,290.00

Cost of goods available for sale $260,390.00

Less: Ending finished goods inventory $56,100.00

Unadjusted cost of goods sold $204,290.00

Add: Underapplied overhead $1,010.00 ($42,110 - $41,100)

Adjusted cost of goods sold $205,300.00