Question

Bledsoe Corporation has provided the following data for the month of November: Beginning Ending Raw materials $ 25,100 $ 21,100 Work in process $ 17,100 $ 10,100 Finished Goods $ 48,100 $ 56,100 Additional information: Raw materials purchases $ 72,100 Direct labor cost $ 92,100 Manufacturing overhead cost incurred $ 42,110 Indirect materials included in manufacturing overhead cost incurred $ 4,010 Manufacturing overhead cost applied to Work in Process $ 41,100 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

Answer:

                        Bledsoe Corporation

Schedule of Cost of goods manufactured

Particulars                                      Amount

Direct materials:  

Beginning material inventory        $25,100.00  

Add: Purchases                              $72,100.00

Raw material available for use      $97,200.00  

Less: Ending material inventory    $21,100.00

Raw material used in production   $76,100.00  

Less: Indirect material                     $4,010.00     $72,090.00

Direct labor                                                             $92,100.00

Manufacturing overhead applied                          $41,100.00

Total manufacturing costs                                      $205,290.00

Add: Beginning WIP                                                $17,100.00

Total cost of work in process                                 $222,390.00

Less: Ending WIP                                                     $10,100.00

Cost of goods manufactured                                 $212,290.00

                Bledsoe Corporation

                 Schedule of COGS

Particulars                                                    Amount

Cost of goods sold:

Beginning finished goods inventory        $48,100.00

Add: Cost of goods manufactured           $212,290.00

Cost of goods available for sale               $260,390.00

Less: Ending finished goods inventory    $56,100.00

Unadjusted cost of goods sold                 $204,290.00

Add: Underapplied overhead                   $1,010.00   ($42,110 - $41,100)  

Adjusted cost of goods sold                    $205,300.00