Norris Decorators manufactures special order window coverings During May, Norris

Question

Norris Decorators manufactures special order window coverings During May, Norris's accounting records indicated Raw Materials B. Bal Purchases To WIP E.Bal Work in process inventory, May 1 Sales Factory equipment depreciation Selling expenses Work in process inventory, May 31 Factory supervision wages Raw materials purchased Misc. factory overhead Raw materials inventory, May 1 Factory utilities Raw materials inventory, May 31 Direct labor cost incurred Finished goods inventory, May 1 Finished goods inventory, May 31 3,100 43,000 2,800 2,300 2,400 3,300 12,500 1,400 4,200 600 4,400 8,200 13,300 12,200 Mfg. OH Control B. Balance Cost #1 Cost #2 Cost #3 Cost #4 To WIP E.Bal Use the above information to determine Cost of Goods Manufactured Cost of Goods Sold, and May's Income. Use the provided T-accounts for Ravw Materials, Work in Process, Finished Goods, and the Income Summary (Income Statement) to organize your calculations and receive partial credit You may assume that all manufacturing overhead incurred during the month is "closed" (transferred) to Work in Process B. Bal DM DL Mfg. OH To FG E.Bal Finished Goods B. Bal From WIF To IS E.Bal Raw Materials transferred to WIP Cost of Goods Manufactured Income Summary Revenues CGS Other Expense Net Income Cost of Goods Sold Net Income

Explanation / Answer

Raw Materials Mfg. OH Control Beg. Bal.      4,200.00    12,300.00 WIP (Bal. Fig.) Beg. Bal.                   -        8,100.00 WIP (Bal. Fig.) Raw Material Purch.    12,500.00 Factory Equip. - Dep.      2,800.00 Factory Supervision - Wages      3,300.00 Misc. Factory Overhead      1,400.00 Factory Utilities          600.00 End. Bal.      4,400.00 End. Bal.                   -   WIP Finished Goods Beg. Bal.      3,100.00    29,300.00 Finished Goods (Bal. fig.) Beg. Bal.    13,300.00    30,400.00 Cost of Goods Sold - Bal. Fig. Direct Material    12,300.00 WIP    29,300.00 Direct Labor      8,200.00 Mfg. Overhead      8,100.00 End. Bal.      2,400.00 End. Bal.    12,200.00 Income Summary Revenues    43,000.00 Cost of Goods Sold    30,400.00 Other Exp.      2,300.00 Net Income    10,300.00 Statement of Cost of Goods Manufactured Beginning WIP - May 1      3,100.00 Direct Material Used: Raw Material Inventory - May 1        4,200.00 Direct Material Purchased     12,500.00 Raw Material Available     16,700.00 Raw Material Inventory - May 31     (4,400.00) Direct Material Used    12,300.00 Direct Labor      8,200.00 Manufacturing Overhead Factory Equip. - Dep.        2,800.00 Factory Supervision - Wages        3,300.00 Misc. Factory Overhead        1,400.00 Factory Utilities           600.00 Total Manufacturing Overhead      8,100.00 Total Manufacturing Cost Incurred    28,600.00 Total Manufacturing Cost      31,700.00 Ending WIP - May 31    (2,400.00) Cost of Goods Manufactured    29,300.00 Cost of Goods Sold Finished Goods - May 1     13,300.00 Cost of Goods Manufactured     29,300.00 Cost of Goods Available     42,600.00 Finished Goods - May 31 (12,200.00) Cost of Goods Sold     30,400.00 Income Statement For the Month Ended May 31 Sales     43,000.00 Cost of Goods Sold     30,400.00 Gross Margin     12,600.00 Selling & Admn. Expenses: Selling Expenses        2,300.00 Net Income     10,300.00

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