Question

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

Answer 1

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