At May 31, 2017, the accounts of Lopez Company show the following.
1. May 1 inventories—finished goods $12,600, work in process $14,700, and raw materials $8,200.
2. May 31 inventories—finished goods $9,500, work in process $15,900, and raw materials $7,100.
3. Debit postings to work in process were direct materials $62,400, direct labor $50,000, and manufacturing overhead applied $40,000.
4. Sales revenue totaled $215,000.
Instructions
(a) Prepare a condensed cost of goods manufactured schedule.
(b) Prepare an income statement for May through gross profit.
(c) Indicate the
Want to see the full answer?
Check out a sample textbook solutionChapter 2 Solutions
Managerial Accounting: Tools for Business Decision Making 7e Binder Ready Version + WileyPLUS Registration Card
- OReilly Manufacturing Co.s cost of goods sold for the month ended July 31 was 345,000. The ending work in process inventory was 90% of the beginning work in process inventory. Factory overhead was 50% of the direct labor cost. No indirect materials were used during the period. Other information pertaining to OReillys inventories and production for July is as follows: Required: 1. Prepare a statement of cost of goods manufactured for the month of July. (Hint: Set up a statement of cost of goods manufactured, putting the given information in the appropriate spaces and solving for the unknown information. Start by using cost of goods sold to solve for the cost of goods manufactured.) 2. Prepare a schedule to compute the prime cost incurred during July. 3. Prepare a schedule to compute the conversion cost charged to Work in Process during July.arrow_forwardDuring the year, a company purchased raw materials of $77,321 and incurred direct labor costs of $125,900. Overhead Is applied at the rate of 75% of the direct labor cost. These are the inventory balances: Compute the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold.arrow_forwardThe following data summarize the operations during the year. Prepare a journal entry for each transaction. A. Purchase of raw materials on account: $1,500 B. Raw materials used by Job 1: $400 C. Raw materials used as indirect materials: $50 D. Direct labor for Job 1: $200 E. Indirect labor Incurred for Job 1: $30 F. Factory utilities Incurred on account: $500 G. Adjusting entry for factory depreciation: $200 H. Manufacturing overhead applied as percent of direct labor: 100% I. Job 1 is transferred to finished goods J. Job 1 is sold: $1,000 K. Manufacturing overhead is under applied: $100arrow_forward
- At May 31, 2022, the accounts of Cullumber Company show the following May 1 inventories-finished goods $16,080, work in process $18,720, and raw materials $10,400 May 31 inventories-finished goods $12.160, work in process $20,400, and raw materials $9,040 1 2 3. 4 Debit postings to work in process were direct materials $79,920, direct labor $64,000, and manufacturing overhead applied $51,200. (Assume that overhead applied was equal to overhead incurred) Sales revenue totaled $275,200. Prepare a condensed cost of goods manufactured schedule for May 2022 CULLUMBER COMPANY Cost of Goods Manufactured Schedule For the Month Ended May 31, 2022 4 Sales Reverse eTextbook and Media $ 0 • -13 1arrow_forwardThe following information is available for Erado Company at December 31, 2017: 1. Inventory balance Beginning of Year End of Year Finished Goods $14,000 $10,000 Work in Process 6,000 12,000 Raw Materials 10,300 6,500 Debit postings to Work in Process Inventory during the year were: Direct materials $90,000 Direct labor 60,000 Manufacturing overhead applied 75,000 Instructions (a) Prepare a condensed cost of goods manufactured schedule.arrow_forward2. At May 31, 2010, the accounts of Hannifan Manufacturing Company show the following. 1. May 1 inventories finished goods $12,600, work in process $14,700, and raw materials$8,200. 2. May 31 inventories-finished goods $9,500, work in process $17,900, and raw materials $7,100. 3. Debit postings to work in process were: direct materials $62,400, direct labor $32,000, and manufacturing overhead applied $40,000. 4. Sales totaled S200,000. Instructions (a) Prepare a condensed cost of goods manufactured schedule. (b) Prepare an income statement for May through gross profit. (c) Indicate the balance sheet presentation of the manufacturing inventories at May 31, 2010.arrow_forward
- An analysis of the accounts of Marin Company reveals the following manufacturing cost data for the month ended June 30, 2022. Inventory Raw materials Work in process Finished goods Beginning Ending $9,800 $14,380 7,550 9.000 (a) 5,300 9,800 Costs incurred: raw materials purchases $57,500, direct labor $49,300, manufacturing overhead $22,160. The specific overhead costs were: indirect labor $5,700, factory insurance $4,500, machinery depreciation $4,500, machinery repairs $2,090, factory utilities $3,780, and miscellaneous factory costs $1,590. (Assume that all raw materials used were direct materials.) Prepare the cost of goods manufactured schedule for the month ended June 30, 2022. MARIN COMPANY Cost of Goods Manufactured Schedule UIL JUIarrow_forwardAn analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended June 30, 2020. Inventory Raw materials Work in process Finished goods Ending $9,880 $15,510 Beginning 5,790 9,760 9,050 6,530 Costs incurred: raw materials purchases $57,720, direct labor $51,130, manufacturing overhead $23,970. The specific overhead costs were: indirect labor $7,090, factory insurance $4,160, machinery depreciation $4,900, machinery repairs $2,450, factory utilities. $3,570, and miscellaneous factory costs $1,800. Assume that all raw materials used were direct materials. ROBERTS COMPANY Cost of Goods Manufactured Schedule ROBERTS COMPANY (Partial) Balance Sheetarrow_forwardAn analysis of the accounts of Flint Company reveals the following manufacturing cost data for the month ended June 30, 2022. Inventory Beginning Ending Raw materials $11,000 $16,180 Work in process 5,900 8,450 Finished goods 11,000 10,200 Costs incurred: raw materials purchases $64,100, direct labor $54,700, manufacturing overhead $25,040. The specific overhead costs were: indirect labor $6,300, factory insurance $5,100, machinery depreciation $5,100, machinery repairs $2,390, factory utilities $4,380, and miscellaneous factory costs $1,770. Assume that all raw materials used were direct materials. (a) Prepare the cost of goods manufactured schedule for the month ended June 30, 2022. SUPIarrow_forward
- An analysis of the accounts of Williams Company reveals the following manufacturing cost data for the month ended September 30, 2017. Inventories Beginning Ending Raw materials $12,000 $11,300 Work in process 7,500 5,000 Finished goods 10,000 12,000 Costs incurred: raw materials purchase $62,500, direct labor $51,000, manufacturing overhead $25,650. The specific overhead costs were: indirect labor $6,500, factory insurance $5,000, machinery depreciation $6,000, machinery repairs $2,800, factory utilities $3,600, miscellaneous factory costs $1,750. Assume that all raw materials used were direct materials. Instructions (a) Prepare the cost of goods manufactured schedule for the month ended September 30, 2017. (b) Show the presentation of the ending…arrow_forwardAt May 31, 2020, the accounts of Sheffield Company show the following. 1. May 1 inventories—finished goods $ 14,800, work in process $ 17,600, and raw materials $ 8,600. 2. May 31 inventories—finished goods $ 9,600, work in process $ 17,000, and raw materials $ 8,000. 3. Increases to work in process were direct materials $ 64,300, direct labor $ 51,400, and manufacturing overhead applied $ 42,100. 4. Sales revenue totaled $ 217,000. (a) Prepare a condensed cost of goods manufactured schedule for May 2020. SHEFFIELD COMPANYCost of Goods Manufactured Schedulechoose the accounting periodchoose the accounting period select an opening section nameselect an opening section name $ enter a dollar amountenter a dollar amount select an account titleselect an account title $ enter a dollar amountenter a dollar amount select an account titleselect an account title enter a dollar amountenter a dollar amount…arrow_forwardEnter the following entries for the month of August 2021. Purchased raw materials on account, $3,100. Selling and Administrative expenses incurred and paid, $1,200. Used direct materials, $3,900. Used indirect materials, $300. Manufacturing wages incurred totaled $4,000, of which 90% was direct labor and 10% was indirect labor. Incurred other actual factory overhead on account, $1,300. Factory Overhead was allocated to Work in Process Inventory at a predetermined overhead allocation rate of 60% of Direct Labor costs incurred during August. The cost of product completed, $10,000. Sales on account, $17,500. The cost of the units sold was $9,500. Prepare and enter the necessary adjusting entry to correct for the overallocated or underallocated Factory Overhead.arrow_forward
- Principles of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage LearningPrinciples of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College