Bledsoe Corporation has provided the following data for the month of November: Beginning Ending Raw materials $ 25,100 $ 21,100 Work in process $ 17,100 $ 10,100 Finished Goods $ 48,100 $ 56,100 Additional information: Raw materials purchases $ 72,100 Direct labor cost $ 92,100 Manufacturing overhead cost incurred $ 42,110 Indirect materials included in manufacturing overhead cost incurred $ 4,010 Manufacturing overhead cost applied to Work in Process $ 41,100 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. Required: Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold.

                        Bledsoe Corporation

Schedule of Cost of goods manufactured

Particulars                                      Amount

Direct materials:  

Beginning material inventory        $25,100.00  

Add: Purchases                              $72,100.00

Raw material available for use      $97,200.00  

Less: Ending material inventory    $21,100.00

Raw material used in production   $76,100.00  

Less: Indirect material                     $4,010.00     $72,090.00

Direct labor                                                             $92,100.00

Manufacturing overhead applied                          $41,100.00

Total manufacturing costs                                      $205,290.00

Add: Beginning WIP                                                $17,100.00

Total cost of work in process                                 $222,390.00

Less: Ending WIP                                                     $10,100.00

Cost of goods manufactured                                 $212,290.00

                Bledsoe Corporation

                 Schedule of COGS

Particulars                                                    Amount

Cost of goods sold:

Beginning finished goods inventory        $48,100.00

Add: Cost of goods manufactured           $212,290.00

Cost of goods available for sale               $260,390.00

Less: Ending finished goods inventory    $56,100.00

Unadjusted cost of goods sold                 $204,290.00

Add: Underapplied overhead                   $1,010.00   ($42,110 - $41,100)  

Adjusted cost of goods sold                    $205,300.00

1. Depreciation

2. True

3. Perishability

Explanation:

1. A balance sheet contains three elements:

Assets

Liability

Equity.

So the depreciation is  not part of it. However, in arriving at the book value of an asset, depreciation is normally considered. But it does not form part of the three element of balance sheet on its own.

2. Businesses have statutory responsibilities to report their financial statements to the Internal Revenue Service (IRS) each fiscal year in order to be assessed to tax for each tax year. So the answer is true.

3. Perishability is the loss a company experiences when goods and services goes unused. This define that the unused goods and services deteriorates in value as they are not consumed. So perishability is correct.