Question

"Consider the following data: Cost of goods sold $70 Direct labor $20 Direct materials used $15 Cost of goods manufactured $80 Work in process ending $10 Finished goods ending $15 Actual overhead $32 OH allocated at 150% of DL$. Show all computations. a) Prepare a schedule of COGM & Sold using OH allocated. b) Prepare the journal entry to close OH."

Answer 1

Answer:

Schedule of cost of goods manufactured & Sold

Particulars                                   Amount

Direct materials used              $15

Direct labor                                 $20

Factory overhead Applied         $30

(150% of DL Cost)

Total manufacturing costs          $65

Add: Beginning WIP                    $25

Total cost of work in process     $90

Less: Ending WIP                         $10

Cost of goods manufactured    $80

Particulars                                                  Amount

Cost of goods manufactured                       $80

Add: Beginning finished goods inventory   $5

Cost of goods available for sale                 $85

Less: Ending finished goods inventory        $15

Cost of goods sold                                        $70