Question

"Consider the following data: Cost of goods sold $70 Direct labor $20 Direct materials used $15 Cost of goods manufactured $80 Work in process ending $10 Finished goods ending $15 Actual overhead $32 OH allocated at 150% of DL$. Show all computations. a) Prepare a schedule of COGM & Sold using OH allocated. b) Prepare the journal entry to close OH."

Answer 1

Schedule of cost of goods manufactured & Sold

Particulars Amount

Direct materials used $15

Direct labor $20

Factory overhead Applied $30

(150% of DL Cost)

Total manufacturing costs $65

Add: Beginning WIP $25

Total cost of work in process $90

Less: Ending WIP $10

Cost of goods manufactured $80

Particulars Amount

Cost of goods manufactured $80

Add: Beginning finished goods inventory $5

Cost of goods available for sale $85

Less: Ending finished goods inventory $15

Cost of goods sold $70