Cost of Goods Manufactured and Sold LeMans Company produces specialty papers at
ID: 2605688 • 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: Direct materials inventory Work-in-process inventory Finished goods inventory 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: Direct materials inventory Work-in-process inventory Finished goods inventory $62,400 33,900 55,600 $63,000 37,500 50,800 e here to searchExplanation / Answer
Answer
Statement of Cost of Goods Manufactured
Direct Material:
Beginning Raw material Inventory
62400
Add: Cost of raw material purchased
346000
Material available
408400
Less: Ending Raw material inventory
63000
Direct Materials used in Production
345400
Direct Labor Cost
143000
Total overhead cost
375800
Total Manufacturing cost added
864200
Add: Opening Work in Progress
33900
Less: Closing Work in Progress
37500
Cost of Goods manufactured
860600
Statement of Cost of Goods Sold
Opening Finished goods inventory
55600
Add: Cost of Goods manufactured
860600
Total goods available for Sale
916200
Less: Closing finished goods inventory
50800
Cost of Goods Sold
865400
Statement of Cost of Goods Manufactured
Direct Material:
Beginning Raw material Inventory
62400
Add: Cost of raw material purchased
346000
Material available
408400
Less: Ending Raw material inventory
63000
Direct Materials used in Production
345400
Direct Labor Cost
143000
Total overhead cost
375800
Total Manufacturing cost added
864200
Add: Opening Work in Progress
33900
Less: Closing Work in Progress
37500
Cost of Goods manufactured
860600