At May 31, 2017, the accounts of Lopez Company show the following. 1.May 1 inven

Question

At May 31, 2017, the accounts of Lopez Company show the following. 1.May 1 inventories—finished goods $12,600, work in process $14,700, and raw materials $8,200. 2.May 31 inventories—finished goods $9,500, work in process $15,900, and raw materials $7,100. 3.Debit postings to work in process were direct materials $62,400, direct labor $50,000, and manufacturing overhead applied $40,000. 4.Sales revenue totaled $215,000. Instructions (a) Prepare a condensed cost of goods manufactured schedule. (b) Prepare an income statement for May through gross profit. (c) Indicate the balance sheet presentation of the manufacturing inventories at May 31, 2017.

Explanation / Answer

(a) Prepare a condensed cost of goods manufactured schedule.

(b) Prepare an income statement for May through gross profit.

(c) Indicate the balance sheet presentation of the manufacturing inventories at May 31, 2017.

Beginning work in process 14700 Direct material 62400 Direct labour 50000 Manufacturing overhead 40000 Total manufacturing cost 152400 Total cost of work in process 167100 Less: Ending work in process -15900 Cost of goods manufactured 151200

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