Hirschman Corporation has provided the following data for the month of April: In
ID: 2425323 • Letter: H
Question
Hirschman Corporation has provided the following data for the month of April:
Inventories: Beginning
Ending
RAW MATERIALS $20,000
$30,000
WORK IN PROCESS $18,000
$20,000
FINISHED GOODS $40,000
Additional information:
$42,000
Raw materials purchases
$70,000
Direct labor cost
$80,000
Manufacturing overhead cost incurred (ACTUAL)
$56,000
Indirect materials included in manufacturing overhead cost incurred
$5,000
Manufacturing overhead cost applied to Work in Process
$57,000
Required:
Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods
Sold in good form. (Include over/under applied overhead)
Inventories: Beginning
Ending
RAW MATERIALS $20,000
$30,000
WORK IN PROCESS $18,000
$20,000
FINISHED GOODS $40,000
Additional information:
$42,000
Raw materials purchases
$70,000
Direct labor cost
$80,000
Manufacturing overhead cost incurred (ACTUAL)
$56,000
Indirect materials included in manufacturing overhead cost incurred
$5,000
Manufacturing overhead cost applied to Work in Process
$57,000
Explanation / Answer
Costs of Goods Manufactured Direct Materials:
Raw Material Inv Beginning $20,000
Raw Materials Purchased $70,000
Total Raw Materials Available $90,000
Ending Raw Materials Inv. ($30,000)
Raw Materials used in Production $60,000
Indirect materials included in manufacturing overhead ($5,000) $55,000
Direct Labor $80,000
Manufacturing O/H applied to WIP $57,000
Total Manufacturing Costs $192,000
Beginning WIP Inv $18,000
Ending WIP Inventory ($20,000)
Cost of Goods Manufactured $190,000
Costs of Goods Sold Finished goods Inventory, beg. $40,000
Cost of Goods Manufactured $190,000
Cost of Goods Available for Sale $230,000
Finished goods Inventory, ending ($42,000)
Unadjusted Cost of Goods Sold $188,000
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