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 | $167,760 | $125,280 |
| Work in Process Inventory | 263,520 | 216,000 |
| Finished Goods Inventory | 129,600 | 188,640 |
During the month, the company purchased $1,180,800 of raw material; direct material used during the period amounted to $907,200. Factory payroll costs for July were $1,418,400, of which 75 percent was related to direct labor. Overhead charges for depreciation, insurance, utilities, and maintenance totaled $1,080,000 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 | | Answer |
| Answer |
| Answer | |
| Raw material purchased | Answer | |
| Raw material available | Answer | |
| Answer |
| Answer | |
| Raw material used | Answer | |
| Answer |
| Answer | |
| Direct material used | | Answer |
| Answer |
| | Answer |
| Overhead: | | |
| Various | Answer | |
| Indirect material | Answer | |
| Answer |
| Answer | Answer |
| Total cost to account for | Answer | Answer |
| Answer |
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 | Answer |
| Answer |
| Answer |
| Goods available for sale | Answer |
| Answer |
| Answer |
| Cost of goods sold | Answer |
