Question

Fort Corporation had the following transactions during its first month of operations:

1.		Purchased raw materials on account, $85,000.
2.		Raw Materials of $30,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,000 was classified as indirect materials.
3.		Factory labor costs incurred were $175,000.
4.		Time tickets indicated that $145,000 was direct labor and $30,000 was indirect labor.
5.		Overhead costs incurred were $198,000.
6.		Manufacturing overhead was applied at the rate of 150% of direct labor cost.
7.		Goods costing $115,000 are still incomplete at the end of the month; the other goods were completed and transferred to finished goods.
8.		Finished goods costing $100,000 to manufacture were sold.

Using the grid below, record the above transactions for Fort Corporation. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

		Manufacturing Costs							Work in Process Inventory		Finished Goods Inventory		Cost of Goods Sold
		Raw Materials Inventory		Factory Labor		Manufacturing Overhead
1.		$		$		$			$		$		$
2.
2.
3.
4.
4.
5.
6.
7.
8.

find 1)the manufacturing costs 2) work in process inventory 3) finished goods inventory 4) cost of goods sold for each raw material inventory , factory labor and manufacturing overhead

Answer 1

	Manufacturing Costs			Work in Process Inventory	Finished Goods Inventory	Cost of Goods Sold
	Raw Materials Inventory	Factory Labor	Manufacturing Overhead
1	85000
2	-30000		6000	24000
3		175000
4		-175000	30000	145000
5			198000
6			-217500	217500
7				-271500	271500
8					-100000	100000

Workings:
6	Manufacturing overhead applied	217500	=145000*150%
7	Goods completed	271500	=24000+145000+217500-115000