Exercise 1-16 An analysis of the accounts of Roberts Company reveals the followi
ID: 2539257 • Letter: E
Question
Exercise 1-16 An analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended June 30, 2017 Inventory Raw materials Work in process Finished goods Beginning Ending $9,180 5,670 9,300 $17,480 7,610 6,430 Costs incurred: raw materials purchases $57,050, direct labor $51,080, manufacturing overhead $23,010. The specific overhead costs were: indirect labor $5,790, factory insurance $4,900, machinery depreciation $4,640, machinery repairs $2,290, factory utilities $3,450, and miscellaneous factory costs $1,940. Assume that all raw materials used were direct materials. (a) Prepare the cost of goods manufactured schedule for the month ended June 30, 2017Explanation / Answer
Solution: A. ROBERTS COMPANY Schedule of Cost of Goods Manufactured For Year Ended June 30, 2017 Work in process inventory, June 1 $5,670 Direct Materials Raw materials inventory, June 1 $9,180 Raw materials purchases $57,050 Total Raw materials available for use $66,230 Less: Raw materials inventory, June 30 $17,480 Direct materials used $48,750 Direct Labor $51,080 Manufacturing overhead Indirect Labor $5,790 Factory insurance $4,900 Machinery depreciation $4,640 Factory utilities $3,450 Machinery repairs $2,290 Miscellaneous factory costs $1,940 Total manufacturing overhead $23,010 Total manufacturing costs $122,840 Total cost of work in process $128,510 Less: Work in process inventory, June 30 $7,610 Cost of Goods Manufactured $120,900 Working Notes: Follow the calculation show in alphabets in 1st column to understand how the amounts are calculated. ROBERTS COMPANY Schedule of Cost of Goods Manufactured For Year Ended June 30, 2017 a Work in process inventory, June 1 $5,670 b Direct Materials c Raw materials inventory, June 1 $9,180 d Raw materials purchases $57,050 e=c+d Total Raw materials available for use $66,230 f Less: Raw materials inventory, June 30 $17,480 g=e-f Direct materials used $48,750 h Direct Labor $51,080 Manufacturing overhead i Indirect Labor $5,790 j Factory insurance $4,900 k Machinery depreciation $4,640 l Factory utilities $3,450 m Machinery repairs $2,290 n Miscellaneous factory costs $1,940 o=i+j+k+l+m+n Total manufacturing overhead $23,010 p=o+h+g Total manufacturing costs $122,840 q=a+p Total cost of work in process $128,510 r=p-q Less: Work in process inventory, June 30 $7,610 s=q-r Cost of Goods Manufactured $120,900 B. ROBERTS COMPANY (Partial) Balance Sheet June 30, 2017 Current assets Inventories Finished goods 6,430 Work in process 7,610 Raw materials 17,480 31,520 Working Notes: ROBERTS COMPANY (Partial) Balance Sheet June 30, 2017 Current assets Inventories a Finished goods 6,430 b Work in process 7,610 c Raw materials 17,480 d=a+b+c 31,520 Please feel free to ask if anything about above solution in comment section of the question.
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