Reference no: EM13341802

(a) 

Work in Process - beginning
Raw Material Inventory
Beginning Balance	$  18,000
Purchases
Available to use
Ending Balance
Raw material used
Direct labor
Overhead applied*
Total cost used in production
Total costs to account for
Work in Process - ending		)
Cost of Goods Manufactured

 

                  *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