At May 31, 2020, 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. (Assume that overhead applied was equal to overhead incurred.) 4.Sales revenue totaled $215,000. 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, 2020.
At May 31, 2020, 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. (Assume that overhead applied was equal to overhead incurred.) 4.Sales revenue totaled $215,000. 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, 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:At May 31, 2020, 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. (Assume
that overhead applied was equal to
overhead incurred.)
4.Sales revenue totaled $215,000.
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, 2020.
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