Question

At May 31, 2020, the accounts of Crane Company show the following.

1. May 1 inventories—finished goods $13,200, work in process $15,000, and raw materials $8,700.
2. May 31 inventories—finished goods $9,800, work in process $16,500, and raw materials $7,300.
3. Increases to work in process were direct materials $63,100, direct labor $50,900, and manufacturing overhead applied $42,900.
4. Sales revenue totaled $216,500

Answer 1

Step-by-step explanation:

1. Cost of goods manufactured schedule

Beginning work-in-process inventory $15,000

Add:

Direct materials $63,100

Direct labor $50,900

Manufacturing overhead $42,900

Total manufacturing cost $156,900

Less: ending work-in-process inventory -$16,500

Cost of goods manufactured $155,400

2. The income statement is presented below:

Sales revenue $216,500

Less: Cost of goods sold

Beginning finished goods inventory $13,200

Cost of goods manufactured $155,400

Less: Ending finished goods inventory -$9,800 -$158,800

Gross profit $57,700

3. The balance is presented below:

Raw materials $7,300

Work-in process $16,500

Finished goods $9,800

Total inventory $33,600