Question

The following data from the Oasis Corporation is below:
	Sales			$              640,000
	Direct Labor Cost			90,000
	Raw Material Purchases			132,000
	Manufacturing Overhead applied to WIP			210,000
	Actual Manufacturing Overhead costs			220,000
	Administrative Salaries			38,000
	Depreciation Expense - Office			15,000
	Marketing Expense			22,000
	Rent Expense - Office			34,000
	Sales Salaries			35,000
	Sales Commissions			12,000
	Direct Materials, beginning balance			8,000
	Direct Materials, ending balance			10,000
	Work in Process, beginning balance			5,000
	Work in Process, ending balance			20,000
	Finished Goods, beginning balance			70,000
	Finished Goods, ending balance			25,000

Prepare schedule of cost of goods manufactured. All raw materials used in production were

direct materials.

Answer 1

Solution

Oasis Corporation
Schedule of Cost of Goods Manufactured
Direct Material
Raw material Inventory Beginning	$ 8,000
Raw material Purchased	$ 132,000
Raw material available for use	$ 140,000
Less: Raw material Inventory Ending	$ 10,000
Direct Material Used		$ 130,000
Direct labor		$ 90,000
Manufacturing Overhead applied		$ 210,000
Total manufacturing Cost During the month		$ 430,000
Add: Work in process Beginning		$ 5,000
Total Work in Process		$ 435,000
Less: Work in progress Ending		$ 20,000
Cost of Goods Manufactured		$ 415,000