Parmitan corporation has provided the following data concerning last month’s man
ID: 2329331 • Letter: P
Question
Parmitan corporation has provided the following data concerning last month’s manufacturing operations.
Purchases of raw materials______________________________ $53,000
Indirect materials included in manufacturing overhead________ 8,000
Direct labor__________________________________________ 62,000
Manufacturing overhead applied to work in process__________ 41,000
Underapplied overhead_________________________________ 8,000
Ending raw materials
Inventory = $25,000
Ending work in process
Inventory = $43,000
INVENTORIES Beginning of year Ending of year
Raw materials__________________________________$24,000 $ 6,000
work in process ___________________________ 41,000 38,000
Finished goods________________________________ 66,000 93,000
REQUIRED: 1. Prepare a schedule of cost of goods manufactured for the month
2. Prepare a schedule of cost of goods sold for the month.
Explanation / Answer
1) 2) Schedule of cost of goods manufactured COGS statementfor the month Direct Materials used Raw material inventory - beginning 24000 Finished Goods inventory,beginning 66000 Add: Purchase of Raw material 53000 add: cost of goods manufactured 169000 Raw material availaable for use 77000 Cost of goods available for sale 235000 Less: Raw material inventory-ending 6000 Less: Finished Goods Inventory 93000 raw material used in production 71000 Unadjusted cost of goods sold 142000 Less: indirect material used 8000 add: Underapplied overhead 8000 Direct material used 63000 Adjusted cost of goods sold 150000 Direct Labour incurred 62000 Manufacturing overhead 41000 Total manufacturing costs added this year 166000 Beginning WIP 41000 Total WIP 207000 Less: WIP - ending 38000 Cost of goods manufactured 169000