91Ó°ÊÓ

Computing cost of goods manufactured

Consider the following partially completed schedules of cost of goods manufactured. Compute the missing amounts.

Banner, Inc. Larry’s Bakery Sports Gear

Beginning Work-in-Process Inventory \( (a) \) 40,800 \( 2,200

Direct Materials Used 14,400 35,900 (g)

Direct Labor 10,300 20,100 1,900

Manufacturing Overhead (b) 10,000 900

Total Manufacturing Costs Incurred during the Year 45,200 (d) (h)

Total Manufacturing Costs to Account for 55,400 (e) 8,300

Ending Work-in-Process Inventory (c) (25,500) (2,600)

Cost of Goods Manufactured \) 50,500 \( (f) \) (i)

Step by step solution

01

Step-by-Step SolutionStep 1 Definition of cost of goods manufactured

The cost of goods manufactured is defined as the manufacturing costs of the goods that are finished in the production process.

02

Computation of cost of goods manufactured

Computation of cost of goods manufactured
	Banner Inc	Larry’s Bakery	Sports Gear
Beginning Work-in-Process Inventory	A $10,200	$40,800	$2,200
Direct Material Used	$14,400	$35,900	G $3,300
Direct Labour	$10,300	$20,100	$1,900
Manufacturing Overhead	B $20,500	$10,000	$900
Total manufacturing cost incurred during the year	$45,200	D $66,000	H $6,100
Total manufacturing costs to account for	$55,400	E $106,800	$8,300
Ending work-in-process inventory	C -$4,900	-$25,500	-$2,600
Cost of goods manufactured	$50,500	F $81,300	I $5,700

Unlock Step-by-Step Solutions & Ace Your Exams!

• Full Textbook Solutions

  Get detailed explanations and key concepts

• Unlimited Al creation

  Al flashcards, explanations, exams and more...

• Ads-free access

  To over 500 millions flashcards

• Money-back guarantee

  We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91Ó°ÊÓ!