Question
CGM; CGS Irresistible Art produces collectible pieces of art. The companys Raw Material Inventory account includes the costs of both direct and indirect materials. Account
CGM; CGS Irresistible Art produces collectible pieces of art. The companys Raw Material Inventory account includes the costs of both direct and indirect materials. Account balances for the company at the beginning and end of July follow:
| July 1 | July 31 | |
|---|---|---|
| Raw Material Inventory | $205,040 | $153,120 |
| Work in Process Inventory | 322,080 | 264,000 |
| Finished Goods Inventory | 158,400 | 230,560 |
During the month, the company purchased $1,443,200 of raw material; direct material used during the period amounted to $1,108,800. Factory payroll costs for July were $1,733,600, of which 75 percent was related to direct labor. Overhead charges for depreciation, insurance, utilities, and maintenance totaled $1,320,000 for July. a. Prepare a schedule of cost of goods manufactured. Note: Do not use negatives signs with your answers.
| Irresistible Art | ||
|---|---|---|
| Schedule of Cost of Goods Manufactured | ||
| For the Month Ended July 31 | ||
| Beginning WIP inventory | ||
| Beginning RM inventoryCost of goods manufacturedDirect laborIndirect laborLess ending FG inventoryLess ending RM inventoryLess ending WIP inventoryLess indirect material usedPlus ending FG inventoryPlus ending RM inventoryPlus ending WIP inventoryPlus indirect material used | ||
| Raw material purchased | ||
| Raw material available | ||
| Beginning RM inventoryCost of goods manufacturedDirect laborIndirect laborLess ending FG inventoryLess ending RM inventoryLess ending WIP inventoryLess indirect material usedPlus ending FG inventoryPlus ending RM inventoryPlus ending WIP inventoryPlus indirect material used | ||
| Raw material used | ||
| Beginning RM inventoryCost of goods manufacturedDirect laborIndirect laborLess ending FG inventoryLess ending RM inventoryLess ending WIP inventoryLess indirect material usedPlus ending FG inventoryPlus ending RM inventoryPlus ending WIP inventoryPlus indirect material used | ||
| Direct material used | ||
| Beginning RM inventoryCost of goods manufacturedDirect laborIndirect laborLess ending FG inventoryLess ending RM inventoryLess ending WIP inventoryLess indirect material usedPlus ending FG inventoryPlus ending RM inventoryPlus ending WIP inventoryPlus indirect material used | ||
| Overhead: | ||
| Various | ||
| Indirect material | ||
| Beginning RM inventoryCost of goods manufacturedDirect laborIndirect laborLess ending FG inventoryLess ending RM inventoryLess ending WIP inventoryLess indirect material usedPlus ending FG inventoryPlus ending RM inventoryPlus ending WIP inventoryPlus indirect material used | ||
| Total cost to account for | ||
| Beginning RM inventoryCost of goods manufacturedDirect laborIndirect laborLess ending FG inventoryLess ending RM inventoryLess ending WIP inventoryLess indirect material usedPlus ending FG inventoryPlus ending RM inventoryPlus ending WIP inventoryPlus indirect material used | ||
| Beginning RM inventoryCost of goods manufacturedDirect laborIndirect laborLess ending FG inventoryLess ending RM inventoryLess ending WIP inventoryLess indirect material usedPlus ending FG inventoryPlus ending RM inventoryPlus ending WIP inventoryPlus indirect material used | ||
b. Prepare a schedule of cost of goods sold. Note: Do not use negative signs with your answers.
| Irresistible Art | ||
|---|---|---|
| Schedule of Cost of Goods Sold | ||
| For the Month Ended July 31 | ||
| Beginning FG inventory | ||
| Beginning RM inventoryCost of goods manufacturedDirect laborIndirect laborLess ending FG inventoryLess ending RM inventoryLess ending WIP inventoryLess indirect material usedPlus ending FG inventoryPlus ending RM inventoryPlus ending WIP inventoryPlus indirect material used | ||
| Goods available for sale | ||
| Beginning RM inventoryCost of goods manufacturedDirect laborIndirect laborLess ending FG inventoryLess ending RM inventoryLess ending WIP inventoryLess indirect material usedPlus ending FG inventoryPlus ending RM inventoryPlus ending WIP inventoryPlus indirect material used | ||
| Cost of goods sold | ||
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Financial Accounting And Reporting
Authors: Barry Elliott, Jamie Elliott
19th Edition
1292255994, 9781292255996
