Prepare a schedule of cost of goods sold

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Reference no: EM133922872

Problem

Dream Makers is a small manufacturer of gold and platinum jewelry. It uses a job costing system that applies overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $529,100, and management budgeted 37,000 direct labor-hours. The company had no Materials, Work-in-Process, or Finished Goods Inventory at the beginning of April. These transactions were recorded during April:

I. April insurance cost for the manufacturing property and equipment was $2,150. The premium had been paid in January.

II. Recorded $1,270 depreciation on an administrative asset.

III. Purchased 21 pounds of high-grade polishing materials at $16 per pound (indirect materials).

IV. Paid factory utility bill, $6,790, in cash.

V. Incurred 4,000 hours and paid payroll costs of $160,000. Of this amount, 1,000 hours and $20,000 were indirect labor costs.

VI. Incurred and paid other factory overhead costs, $6,480. Get the instant assignment help.

VII. Purchased $28,000 of materials. Direct materials included unpolished semiprecious stones and gold. Indirect materials included supplies and polishing materials.

VIII. Requisitioned $22,000 of direct materials and $2,300 of indirect materials from Materials Inventory.

IX. Incurred miscellaneous selling and administrative expenses, $6,640.

X. Incurred $4,240 depreciation on manufacturing equipment for April.

XI. Paid advertising expenses in cash, $3,175.

XII. Applied factory overhead to production on the basis of direct labor hours.

XIII. Completed goods costing $67,500 during the month.

XIV. Made sales on account in April, $65,880. The Cost of Goods Sold was $53,740.

Prepare a schedule of Cost of Goods Sold.

Reference no: EM133922872

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