Question

At May 31, 2020, the accounts of Lopez Company show the following. 1. 2. 3. May 1 inventories-finished goods $15,000, work in process $16,900, and raw materials $9,300. May 31 inventories-finished goods $9,900, work in process $17,100, and raw materials $7,300. Debit postings to work in process were direct materials $64,500, direct labor $52,400, and manufacturing overhead applied $42,700. (Assume that overhead applied was equal to overhead incurred.) Sales revenue totaled $216,500. 4.

Answer 1

Ans.	LOPEZ COMPANY
	COST   OF   GOODS   MANUFACTURED SCHEDULE
	For the Month Ended May 31, 2020
	Particulars	Amount	Amount
	Beginning Work in process inventory		$16,900
	Direct materials	$64,500
	Direct labor	$52,400
	Manufacturing overhead applied	$42,700
	Total manufacturing costs		$159,600
	Total cost of work in process		$176,500
	Less: Ending Work in process inventory		-$17,100
	Cost of goods manufactured		$159,400
	*Finished goods inventory balances are used in the calculation of cost of goods sold.
	*Sales revenue are listed in the Income Statement.