question archive Sales $ 975,000 Direct labor cost $ 165,000 Raw material purchases $ 229,000 Selling expense $ 48,750 Administrative expenses $ 146,250 Manufacturing overhead applied to work in process $ 180,000 Actual manufacturing overhead costs $ 175,050 Inventories: Beginning Ending Raw materials $ 18,000 $ 17,500 Work in process $ 20,000 $ 14,750 Finished goods $ 9,000 $ 11,000 Required: 1
Sales $ 975,000 Direct labor cost $ 165,000 Raw material purchases $ 229,000 Selling expense $ 48,750 Administrative expenses $ 146,250 Manufacturing overhead applied to work in process $ 180,000 Actual manufacturing overhead costs $ 175,050 Inventories: Beginning Ending Raw materials $ 18,000 $ 17,500 Work in process $ 20,000 $ 14,750 Finished goods $ 9,000 $ 11,000 Required: 1
Subject:AccountingPrice: Bought3
Sales $ 975,000
Direct labor cost $ 165,000
Raw material purchases $ 229,000
Selling expense $ 48,750
Administrative expenses $ 146,250
Manufacturing overhead applied to work in process $ 180,000
Actual manufacturing overhead costs $ 175,050
Inventories: Beginning Ending
Raw materials $ 18,000 $ 17,500
Work in process $ 20,000 $ 14,750
Finished goods $ 9,000 $ 11,000
Required:
1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production
were direct materials.
2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or
overapplied overhead is closed to Cost of Goods Sold.
3. Prepare an income statement.
