Acct 505

In: Business and Management

Submitted By LanceLink
Words 953
Pages 4
Question : | (TCO A) The following data (in thousands of dollars) have been taken from the accounting records of Larden Corporation for the just-completed year. | Sales | $950 | | Purchases of raw materials | $170 | | Direct labor | $210 | | Manufacturing overhead | $220 | | Administrative expenses | $180 | | Selling expenses | $140 | | Raw materials inventory, beginning | $70 | | Raw materials inventory, ending | $80 | | Work-in-process inventory, beginning | $30 | | Work-in-process inventory, ending | $20 | | Finished goods inventory, beginning | $100 | | Finished goods inventory, ending | $70 |
Required: Prepare a Schedule of Cost of Goods Manufactured statement in the text box below. | | | Student Answer: | | Direct Materials Raw materials inventory, beginning $70,000.00 Purchases of raw materials $170,000.00 Sum of RM $240,000.00 Raw materials inventory, ending $80,000.00 Material used in Production $160,000.00 WIP Work-in-process inventory, beginning $30,000.00 Sum of RM $240,000.00 Direct labor $210,000.00 Manufacturing overhead $220,000.00 WIP Available $700,000.00 Work-in-process inventory, ending $20,000.00 Cost of Goods Manufactured $680,000.00 Finished Goods Finished goods inventory, beginning $100,000.00 Cost of Goods Manufactured $680,000.00 Finished Good Available $780,000.00 Finished goods inventory, ending $70,000.00 Unadjusted COGS $710,000.00 | | Instructor Explanation: | Schedule of Cost of Goods Manufactured for the Larden Corp. Direct materials:Beginning raw materials inventory $70
Add: purchases raw material 170
Raw materials available for use 240
Deduct ending raw materials 80
Raw materials used in production 160
Direct labor…...

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