Question

Bledsoe Corporation has provided the following data for the month of November: Inventories: Beginning Ending Raw materials $ 25,800 $ 21,800 Work in process $ 17,800 $ 10,800 Finished Goods $ 48,800 $ 56,800 Additional information: Raw materials purchases $ 72,800 Direct labor cost $ 92,800 Manufacturing overhead cost incurred $ 42,880 Indirect materials included in manufacturing overhead cost incurred $ 4,080 Manufacturing overhead cost applied to Work in Process $ 41,800 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

cost of goods manufactured= $218,400

COGS= $210,400

Step-by-step explanation:

To calculate the cost of goods manufactured, we need to use the following formula:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 17,800 + (25,800 + 72,800 - 21,800) + 92,800 + 41,800 - 10,800

cost of goods manufactured= $218,400

Now, we can determine the cost of goods sold:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 48,800 + 218,400 - 56,800

COGS= $210,400