DAY 2

Product Cost – inventoriable

Period Cost – Expenses outside inventories

Standard or predetermined/budgeted

Actual- standard= Variance

Ozarks Manufacturing Company

Schedule of Cost of Goods Manufactured
For the year ended 20xx

Direct Materials

RM Inventory, Beg 71,000

Add: Purchase net 336,000

RM Available For Use 407,000

Less: RM Inv, end 81,000

RM used xx

Less: Indirect Mat xx

Direct Material Used 326,000

Direct Labor 225,000

Applied Manufacturing Overhead 135,000

Total Manufacturing Cost 686,000

Add: WIP Inv, Beg 80,000

Subtotal 766,000

Less: WIP Inv, End 30,000

Cost of Goods Manufactured 736,000

 Ozarks Manufacturing Company

Schedule of Cost of Goods Sold

For the year ended 20xx

Finished Goods Inventory, Beg. 90,000

Add: Cost of Goods Manufactured 736,000

Cost of Goods Available for Sale 826,000

Less: FG inventory, End 110,000

Cost of Goods Sold 716,000

Predetermined Rate = Budgeted Total MOH/Budgeted Activity-Based

Cost Driver – Activity that caused the incurrence of cost

Volume-based/Traditional Costing – 1 cost

p.116

1. Predetermined Rate – P13.3/ DL hours

Applied= Actual hrs x predetermined rate

Actual OH 1,002,000

Applied OH 1,064,000

Over-applied OH 62,000

Factory Overhead Control xx

COGS xx

p.154

Accounts Payable 1,000+136,500-2,500=135,000(purchase)

Raw Material Inv 21,000+135,000-36,000=120,000(materials used)

Accounts Receivable 15,000+806,000-11,000=810,000(Sales)

Sales Revenue 810,000

Finished Goods 20,000+710,000-12,000=718,000 (COGM)

WIP 19,000+718,000-17,000-120,000=600,000 (Direct Labor & Overhead)

Wages Payable 5,000+147,000-2,000=150,000 (DL)

Direct Labor & OH 600,000-150,000=450,000 (Applied Overhead)

Applied Overhead 450,000+2,500=452,000 (Actual Overhead)

Journal:

RM Inventory 135,000

A/P 135,000

WIP Inv 120,000

RM Inventory 120,000

WIP Inventory 150,000

W/P 150,000

MFG OH 452,500

Various Accounts 452,500

WIP Inventory 450,000

MFG OH 450,000

FG Inventory 718,000

WIP Inventory 718,000

COGS 710,000

FG Inventory 710,000
 Schedule of Cost of Goods Manufactured
For the year ended 20xx

Direct Materials

RM Inventory, Beg 21,000

Add: Purchase net 135,000

RM Available For Use 156,000

Less: RM Inv, end 36,000

RM used 120,00

Less: Indirect Mat xx

Direct Material Used 120,000

Direct Labor 150,000

Applied Manufacturing Overhead 450,000

Total Manufacturing Cost 720,000

Add: WIP Inv, Beg 17,000

Subtotal 737,000

Less: WIP Inv, End 19,000

Cost of Goods Manufactured 718,000

Schedule of Cost of Goods Sold

For the year ended 20xx

Finished Goods Inventory, Beg. 12,000

Add: Cost of Goods Manufactured 718,000

Cost of Goods Available for Sale 730,000

Less: FG inventory, End 20,000

Cost of Goods Sold 710,000

P.118

Actual OH:

Insurance 3,600

Ind. Mat 4,900

Dep 2,100

Prop Tax 2,400

Utili 6,000

Ind. Lab. 29,000

Dep. 3,800

Rent 3,100

Total 54,900