Question

2-2B Schedule of Cost of Goods Manufactured Vernon Bakery shows the following data related to its August 31, 2017 fiscal year: $2,400 Raw materials inventory, September 1, 2016 1,600 Raw materials inventory, August 31, 2017 200 Work in process inventory, September 1, 2016 150 Work in process inventory, August 31, 2017 Finished goods inventory, September 1, 2016 Finished goods inventory, August 31, 2017 1,000 7e 900 MOH Rent on the commercial kitchen 12,000 Sc | Depreciation of delivery vehicle DL/ Salary paid to head baker DM Purchases of raw materials Delivery costs 1,500 42,000 58,000 SL ADM Utilities expense - office MOH Depreciation - kitchen equipment 2,500 600 2,000 Dvs Dividends paid to shareholders MOH |Utilities expense - kitchen 10,000 1,200 SELL | Marketing 3,000

Answer 1

Schedule of Cost of goods manufactured

Direct materials:
Beginning raw material inventory	2,400
Add: Purchases of raw material	58,000
Total raw materials available	60,400
Less: Ending raw materials inventory	- 1,600
Raw materials used in production		,58,800
Direct labor
Salary paid to head baker	42,000
Wages paid to assistant bakers	65,000
Total direct labor		107,000
Manufacturing overheads:
Rent on the commercial kitchen	12,000
Depreciation - Kitchen equipment	2,000
Utilities expense - Kitchen	1,200
Wages paid to kitchen cleaning staff	16,000
Total Manufacturing overheads		31,200
Total manufacturing cost		197,000
Add: Beginning work in process inventory		200
		197,200
Less: Ending work in process inventory		- 150
Cost of goods manufactured		197,050