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At May 31, 2020, the accounts of Lopez Company show the following.
1. May 1 inventories-finished goods $14,000, work in process $17,600, and raw materials $8,400.
2. May 31 inventories-finished goods $9,600, work in process $18,000, and raw materials $8,000.
3. Debit postings to work in process were direct materials $65,100, direct labor $51,600, and manufacturing overhead applied $40,200. (Assume that overhead applied was equal to overhead incurred.)
4. Sales revenue totaled $216,500.
Prepare a condensed cost of goods manufactured schedule.
Prepare an income statement for May through gross profit.
Indicate the balance sheet presentation of the manufacturing inventories at May 31, 2020.
♦ Relevant knowledge
The price of goods produced or CGM is shown beginning with the inventory of work in progress (WIP). The total manufacturing cost comprised of direct materials utilized as well as direct labor , and manufacturing overhead that are applied, is then added to the WIP at the beginning to calculate the total working in progress.
1 Answer