Bledsoe Corporation has provided the following data for the month of November: R
ID: 2538193 • Letter: B
Question
Bledsoe Corporation has provided the following data for the month of November: Raw materials Work in process Pinished Goods Beginning Ending 26,500 $22,500 18,500 $11,500 49,500 $57,500 03:59:40 Additional information: Raw materials purchases Direct labor cost Manufacturing overhead cost incurred Indirect materiala included in manufacturing overhead cost incurred Manufacturing overhead cost applied to Work in Process $73,500 $93,500 $43,650 4,150 $42,500 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
Explanation / Answer
Answer
Schedule of Goods Manufactured
Direct Material
Opening Raw Material
26,500
Add: Raw material purchased
73,500
Total raw materials available
100,000
Less: Closing Raw Material
(22,500)
Raw Materials used in Production
77,500
Less: Indirect Material
(4,150)
73,350
Direct Labor
93,500
Manufacturing Overhead applied to Work in process
42,500
Total Manufacturing cost
136,000
Add: Opening WIP
18,500
154,500
Less: Closing WIP
(11,500)
Cost of goods manufactured
143,000
Schedule of Cost of Goods Sold
Opening Finished Goods
49,500
Add: Cost of Goods manufactured
143,000
Cost of Goods available for Sale
192,500
Less: Closing Finished Goods
(57,500)
Unadjusted Cost of Goods Sold
135,000
Add: Underderapplied Overhead (43,650 - 42,500)
1,150
Adjusted Cost of Goods Sold
136,150
Schedule of Goods Manufactured
Direct Material
Opening Raw Material
26,500
Add: Raw material purchased
73,500
Total raw materials available
100,000
Less: Closing Raw Material
(22,500)
Raw Materials used in Production
77,500
Less: Indirect Material
(4,150)
73,350
Direct Labor
93,500
Manufacturing Overhead applied to Work in process
42,500
Total Manufacturing cost
136,000
Add: Opening WIP
18,500
154,500
Less: Closing WIP
(11,500)
Cost of goods manufactured
143,000