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Cost of Goods Manufactured and Sold LeMans Company produces specialty papers at

ID: 2332183 • Letter: C

Question

Cost of Goods Manufactured and Sold

LeMans Company produces specialty papers at its Fox Run plant. At the beginning of June, the following information was supplied by its accountant:

During June, direct labor cost was $143,000, direct materials purchases were $346,000, and the total overhead cost was $375,800. The inventories at the end of June were:

Required:

1. Prepare a cost of goods manufactured statement for June.

LeMans Company

Statement of Cost of Goods Manufactured

For the Month of June

Direct materials:

  

$  

  

  

Materials available

$  

  

  

Direct materials used in production

$  

  

  

  

  

Total manufacturing costs added

$  

  

  

  

  

Cost of goods manufactured

$  


2. Prepare a cost of goods sold schedule for June.

LeMans Company

Statement of Cost of Goods Sold

For the Month of June

  

$  

  

  

  

$  

  

  

Cost of goods sold

$  

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1. Prepare a cost of goods manufactured statement for June.

LeMans Company

Statement of Cost of Goods Manufactured

For the Month of June

Direct materials:

  

$  

  

  

Materials available

$  

  

  

Direct materials used in production

$  

  

  

  

  

Total manufacturing costs added

$  

  

  

  

  

Cost of goods manufactured

$  

Explanation / Answer

Cost of goods mnaufactured Direct materials Beginning direct materials inventory 62,400 Add:Direct materials purchases 346,000 Materials available 408,400 less:ending direct materials inventory 63,000 Direct materials used in production 345,400 Direct labor 143,000 Manufacturing overhead 375,800 Total manufacturing cost added 864,200 Add:Beginning Work in process 33,900 Less:Ending Work in process 37,500 Cost of goods manufactured 860,600 Statement of Cost of Goods sold Beginning finished goods inventory 55,600 Add:Cost of goods manufactured 860,600 cost of goods available for sale 916,200 Ending finished goods inventory 50,800 Cost of goods sold 865,400