BKAM2103

Topic 2 – Exercise 2

BlueDenim Company makes blue jeans. On May 1, Blue Denim had RM68,000 of
materials in inventory. During the month of May, BlueDenim purchased
RM210,000 of materials. On May 31, materials inventory equaled RM22,000.

Required:

Calculate the cost of direct materials used in production for the month of May.

During the month of May, BlueDenim incurred direct labor cost of RM135,000
and manufacturing overhead of RM150,000. On May 1, the work in process
inventory equaled RM50,000 and on May 31, the work in process inventory was
RM16,000.

Required:

Calculate the Cost of Goods Manufactured for the month of May.

During the month of May, 115,000 pairs of jeans were completed at a cost of
goods manufactured of RM575,000. Suppose that on May 1, BlueDenim had
10,000 units in the finished goods inventory costing RM50,000 and on May 31,
the company had 26,000 units in the finished goods inventory costing
RM130,000.

Required:
Prepare a cost of goods sold statement for the Month of May.

Calculate the number of pairs of jeans that were sold during May.