Question

An analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended June 30, 2020. Inventory Beginning Ending Raw materials $9,000 $13,100 Work in process 5,000 7,000 Finished goods 9,000 8,000 Costs incurred: raw materials purchases $54,000, direct labor $47,000, manufacturing overhead $19,900. The specific overhead costs were: indirect labor $5,500, factory insurance $4,000, machinery depreciation $4,000, machinery repairs $1,800, factory utilities $3,100, and miscellaneous factory costs $1,500. Assume that all raw materials used were direct materials. (a) Prepare the cost of goods manufactured schedule for the month ended June 30, 2020.

Answer 1

Answer and Explanation:

The preparation of the cost of goods manufactured is presented below:

Roberts Company

Cost of Goods Sold Statement

For the month ended June 30, 2020

Particulars Amount

Beginning work-in-process inventory $5,000

Manufacturing costs:

Direct materials:

Beginning inventory $9,000

Purchases $54,000

Materials available $63,000

Less: Ending inventory -$13,100

Direct materials used $49,900

Direct labor $47,000

Other manufacturing costs

Indirect labor $5,500

Factory insurance $4,000

Machinery depreciation $4,000

Factory utilities $3,100

Machinery repairs $1,800

Miscellaneous factory Costs $1,500

Total other manufacturing cost $19,900

Total manufacturing costs: $116,800

Total costs of work-in-process $121.800 Less: Ending work-in-process -$7,000

Cost of goods manufactured $114,800