Exercise 16-9 At May 31, 2017, the accounts of Lopez Company show the following.

Question

Exercise 16-9 At May 31, 2017, the accounts of Lopez Company show the following. 1. May 1 inventories-finished goods $12,800, work in process $15,300, and raw materials $9,000. 2. May 31 inventories-finished goods $9,900, work in process $18,900, and raw materials $7,500. 3. Debit postings to work in process were direct materials $63,100, direct labor $52,900, and manufacturing overhead applied $40,200. 4. Sales revenue totaled $216,200. Prepare a condensed cost of goods manufactured schedule. LOPEZ COMPANY Cost of Goods Manufactured Schedule Prepare an income statement for May through gross profit. LOPEZ COMPANY (Partial) Income Statement

Explanation / Answer

LOPEZ COMPANY Cost of Goods Manufactured Schedule For the Month Ended May 31, 2017 Beginning work in process inventory 15300 Direct materials 63100 Direct labor 52900 Manufacturing overhead applied 40200 Total manufacturing costs 156200 Total cost of work in process 171500 Less: Ending work in process inventory 18900 Cost of goods manufactured $ 152600 LOPEZ COMPANY (Partial) Income Statement For the Month Ended May 31, 2017 Sales revenue 216200 Cost of goods sold Beginning finished goods inventory 12800 Add: Cost of goods manufactured 152600 Cost of goods available for sale 165400 Less: Ending finished goods inventory 9900 Cost of goods sold 155500 Gross profit $ 60700 LOPEZ COMPANY (Partial) Balance Sheet May 31, 2017 Inventories Finished goods 9900 Work in process 18900 Raw materials 7500 Total inventories $ 36300

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