Question

At May 31, 2019, the accounts of Kuhlmann Manufacturing 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 $8,500, work in process $22,900, and raw materials $7,100.
3. Debit postings to work in process were: direct materials $77,400, direct labor $50,000, and manufacturing overhead applied $45,000.
4. Sales totaled $225,000.
Required:
a. Prepare a condensed cost of goods manufactured schedule.
b. Prepare an income statement for May through gross profit.

Answer 1

Answer:

A. $164,200

B. $56,700

Explanation:

KUHLMANN MANUFACTURING COMPANY Cost of Goods Manufactured For the months ended 31st May 2019

May 1

Work in process,$ 14,700

Direct materials used $77,400

Direct labor 50,000

Manufacturing overhead applied 45,000

May 31 Less: Work in process 22,900

Cost of goods manufactured $164,200

Therefore the cost of goods manufactured is $164,200

B.

KUHLMANN MANUFACTURING COMPANY

Cost of Goods Manufactured Schedule For the months ended 31st May 2019

Sales 225,000

May1 finished goods 12,600

Cost of goods manufactured 164,200

Cost of goods available for sales 176,800

May 31 finished goods 8,600

Less: Cost of goods sold 168,300

Gross profit 56,700

Therefore the gross profit is $56,700