Question
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
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 | $93,200 | $69,600 |
| Work in Process Inventory | 146,400 | 120,000 |
| Finished Goods Inventory | 72,000 | 104,800 |
During the month, the company purchased $656,000 of raw material; direct material used during the period amounted to $504,000. Factory payroll costs for July were $788,000, of which 75 percent was related to direct labor. Overhead charges for depreciation, insurance, utilities, and maintenance totaled $600,000 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 | |
| AnswerBeginning 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 | Answer | |
| Raw material purchased | Answer | |
| Raw material available | Answer | |
| AnswerBeginning 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 | Answer | |
| Raw material used | Answer | |
| AnswerBeginning 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 | Answer | |
| Direct material used | Answer | |
| AnswerBeginning 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 | Answer | |
| Overhead: | ||
| Various | Answer | |
| Indirect material | Answer | |
| AnswerBeginning 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 | Answer | Answer |
| Total cost to account for | Answer | |
| AnswerBeginning 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 | Answer | |
| AnswerBeginning 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 | 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 | |
| AnswerBeginning 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 | Answer | |
| Goods available for sale | Answer | |
| AnswerBeginning 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 | Answer | |
| Cost of goods sold | Answer | |
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Auditing Corporate Surveillance Systems Research Methods For Greater Transparency
Authors: Isabel Wagner
1st Edition
1108837662, 978-1108837668
