Galactica Ltd’s cost of goods sold For June was $690 000. Work in process inventory on so June was 90 per cent of the 1 June work in process inventory. Manufacturing overhead applied was so per cent of direct labour cost. Other information relating to the company’s inventories and production for the month of June is as follows:
Beginning inventories, 1 June:
Raw material……………………………………………$34,000
Work in process………………………………………….80,000
Finished goods…………………………………………204,000
Purchases of raw material during March………………226,000
Ending inventories, 30 June:
Raw material……………………………………………52,000
Work in process Finished goods………………………210,000
Required:
1. Prepare a schedule of cost of goods manufactured for the month of June.
2. Prepare a schedule to calculate the prime costs (direct material and direct labour) incurred during June.
3. Prepare a schedule to calculate the conversion costs (direct labour and manufacturing overhead) charged to work in process during June.
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