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Argosy University/ Phoniex University/
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Phoniex University
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33.    LO.7 (CGM; CGS) Irresistible Art produces collectible pieces of art. The company’s Raw Material Inventory account includes the costs of both direct and indirect mate- rials. Account balances for the company at the beginning and end of July 2010 follow:
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July 1Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â July 31
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Excel
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|
Raw Material Inventory |
$ 93,200 |
$ 69,600 |
|
Work in Process Inventory |
146,400 |
120,000 |
|
Finished Goods Inventory |
72,000 |
104,800 |
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During the month, the company purchased $656,000 of raw material; direct mate- rial used during the period amounted to $504,000. Factory payroll costs for July were
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$788,000 of which 75 percent was related to direct labor. Overhead charges for depre- ciation, insurance, utilities, and maintenance totaled $600,000 for July.
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a.    Prepare a schedule of cost of goods manufactured.
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b.   Prepare a schedule of cost of goods sold.
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