1

Work in process $ 608,000

Raw Materials $ 608,000
(raw materials used in production)

2
Raw Material-ledger A/C
Beg. balance $ 65,000
Debit $ 646,000
Credit $ 608,000
End. Balance $ 103,000

3
Selling and administrative salaries $ 317,000
Manufacturing overhead $ 150,000
Work In process $ 580,000
Wages Payable $ 1,047,000

4
Manufacturing overhead
applied $ 645,750
(41000 hours * $15.75)

5
Raw Materials $ 608,000
Direct Labor $ 580,000
Manufacturing overhead $ 645,750
Cost added to WIP $ 1,833,750

6
Finished goods $ 1,765,050
Work In process $ 1,765,050

7
Work In process
Beg. Balance $ 20,400
b $ 608,000
f $ 645,750
c $ 580,000 $ 1,765,050 g
End. Balance $ 89,100

8
Actual manufacturing overhead $ 630,000
(480000+150000)
9
Overapplied $ 15,750
(645750-630000)

10
Cost of goods available for sale $ 1,817,850
Beg. Balance $ 52,800
Cost of goods manufactured $ 1,765,050
$ 1,817,850

11
Cost of goods sold $ 1,775,050
Finished goods $ 1,775,050

12
Finished Goods
Beg. Bal. $ 52,800
(g) $ 1,765,050
$ 1,775,050 (h)
End. Bal. $ 42,800

13
Adjusted cost of goods sold
Cost of goods sold $ 1,775,050
Less:Manufacturing overhead $ (15,750)
Adjusted cost of goods sold $ 1,759,300

14
Gorss Margn
Sale $ 2,970,000
Less:COGS $ (1,759,300)
Gross Profit $ 1,210,700

15
Net operating Income

Gross Profit $ 1,210,700

Less:
Selling & Admn.
- salaries $ 317,000
-Exp. $ 376,000
Net Profit $ 517,700
1
Work in process $ 660,000
Raw Materials $ 660,000
(raw materials used in production)

2
Raw Material-ledger A/C
Beg. balance $ 79,000
Debit $ 690,000
Credit $ 660,000
End. Balance $ 109,000

3
Selling and administrative salaries $ 260,000
Manufacturing overhead $ 150,000
Work In process $ 440,000
Wages Payable $ 850,000

4
Manufacturing overhead
applied $ 502,250
(41000 hours * $12.25)

5
Raw Materials $ 660,000
Direct Labor $ 440,000
Manufacturing overhead $ 502,250
Cost added to WIP $ 1,602,250

6
Finished goods $ 1,542,950
Work In process $ 1,542,950

7
Work In process
Beg. Balance $ 25,600
b $ 660,000
f $ 502,250
c $ 440,000 $ 1,542,950 g
End. Balance $ 84,900

8
Actual manufacturing overhead $ 490,000
(340000+150000)
9
Overapplied $ 12,250
(502250-490000)

10
Cost of goods available for sale $ 1,580,150
Beg. Balance $ 37,200
Cost of goods amnufactures $ 1,542,950
$ 1,580,150

11
Cost of goods sold $ 1,552,950
Finished goods $ 1,552,950

12
Finished Goods
Beg. Bal. $ 37,200
(g) $ 1,542,950
$ 1,552,950 (h)
End. Bal. $ 27,200

13
Adjusted cost of goods sold
Cost of goods sold $ 1,552,950
Less:Manufacturing overhead $ (12,250)
Adjusted cost of goods sold $ 1,540,700

14
Gorss Margn
Sale $ 3,172,500
Less:COGS $ (1,540,700)
Gross Profit $ 1,631,800

15
Net operating Income

Gross Profit $ 1,631,800

Less:
Selling & Admn.
- salaries $ 260,000
-Exp. $ 462,000
Net Profit $ 909,800
1
Work in process $ 480,000
Raw Materials $ 480,000
(raw materials used in production)

2
Raw Material
Beg. balance $ 40,000
Debit $ 510,000
Credit $ 480,000
End. Balance $ 70,000

3
Selling and administrative salaries $ 240,000
Manufacturing overhead $ 150,000
Work In process $ 600,000
Wages Payable $ 990,000

4
Manufacturing overhead
applied $ 666,250
(41000 hours * $16.25)

5
Raw Materials $ 480,000
Direct Labor $ 600,000
Manufacturing overhead $ 666,250
Cost added to WIP $ 1,746,250

6
Finished goods $ 1,680,000
Work In process $ 1,680,000

7
Work In process
Beg. Balance $ 18,000
b $ 480,000
f $ 666,250
c $ 600,000 $ 1,680,000 g
End. Balance $ 84,250

8
Actual manufacturing overhead $ 650,000

9
Overapplied $ 16,250
(666250-650000)

10
Cost of goods available for sale $ 1,715,000
Beg. Balance $ 35,000
Cost of goods amnufactures $ 1,680,000
$ 1,715,000

11
Cost of goods sold $ 1,690,000
Finished goods $ 1,690,000

12
Finished Goods
Beg. Bal. $ 35,000
(g) $ 1,680,000
$ 1,690,000 (h)
End. Bal. $ 25,000

13
Adjusted cost of goods sold
Cost of goods sold $ 1,690,000
Less:Manufacturing overhead $ (16,250)
Adjusted cost of goods sold $ 1,673,750

14
Gorss Margn
Sale $ 2,800,000
Less:COGS $ (1,673,750)
Gross Profit $ 1,126,250

15
Net operating Income

Gross Profit $ 1,811,200

Less:
Selling & Admn.
- salaries $ 240,000
-Exp. $ 367,000
Net Profit $ 1,204,200