Answer:
a. cost of goods manufactured schedule.
Direct materials $62,400
Direct labor $50,000
Manufacturing overhead applied $40,000
Add Opening work in process Inventory $14,700
Less Closing work in process Inventory ($15,900)
Cost of goods manufactured $151,200
b. income statement for May
Sales Revenue $215,000
Less Cost of Goods Sold :
Opening finished goods Inventory $12,600
Add Cost of goods manufactured $151,200
Less Closing finished goods Inventory ($12,600) ($176,400)
Gross Profit $38,600
c.presentation of the manufacturing inventories
raw materials $7,100
work in process $15,900
finished goods $9,500
Total Inventory $32,500
Explanation:
a.Cost of Goods Manufactured schedule included all the manufacturing costs incurred during production.
b.The Income statement is used to calculate gross profit as Sale less Cost of Sales.
c.The manufacturing inventories are presented in the balance sheet in their older of liquidity starting with the least liquid category.
