Reference no: EM13341802
(a)
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Work in Process - beginning
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Raw Material Inventory
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Beginning Balance
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$ 18,000
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Purchases
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Available to use
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Ending Balance
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Raw material used
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Direct labor
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Overhead applied*
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Total cost used in production
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Total costs to account for
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Work in Process - ending
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)
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Cost of Goods Manufactured
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*Direct Labor Costs = Direct Labor Hours × Labor Rate
$342,000 = Direct Labor Hours × $9.50
Direct Labor Hours = $342,000 ÷ $9.50 = 36,000 DLHs
Overhead Applied = Predetermined Overhead Rate × DLHs
Overhead Applied = $12.50 × 36,000 DLHs
Overhead Applied = $450,000
(b) Finished Goods - beginning $ 43,200
Cost of Goods Manufactured
Total cost of goods available for sale
Finished Goods - ending
Cost of Goods Sold
All raw materials are considered direct to the manufacture process. During April the company purchased 260,000 of raw materials direct labor cost for the month was 342,000 workers are paid 9.50 per hour. Overhead is applied at the rate of 12.50 for each direct labor hour. Prepare the schedule of cost of goods manufactured and calculate cost of goods sold for april 2009
4/1/09
Raw materials inventory-18,000
Work in process inventory-85,200
Finished goods inventory- 43,200
4/30/09
Raw materials inventory-20,800
Work in process inventory-50,800
Finished goods inventory- 14,700