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	$59,000
Work-in-process inventory	36,400
Finished goods inventory	53,200

During June, direct labor cost was $134,000, direct materials purchases were $330,500, and the total overhead cost was $377,200. The inventories at the end of June were:

Direct materials inventory	$59,600
Work-in-process inventory	40,000
Finished goods inventory	48,600

Required:

Hide 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 $

Hide 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 $

Answer 1

Solution

LeMans Company
Statement of Cost of Goods Manufactured
For the Month of June
Direct materials:
Beginning inventory	$   59,000.00
Add: Purchases	$3,30,500.00
Materials available	$3,89,500.00
Less: Ending inventory	$   59,600.00
Direct materials used in production		$ 3,29,900.00
Direct labor		$ 1,34,000.00
Manufacturing overhead		$ 3,77,200.00
Total manufacturing costs added		$ 8,41,100.00
Add: Beginning work in process		$   36,400.00
Less: Ending work in process		$   40,000.00
Cost of goods manufactured		$ 8,37,500.00

.

LeMans Company
Statement of Cost of Goods Sold
For the Month of June
Beginning finished goods inventory	$   53,200.00
Cost of goods manufactured	$8,37,500.00
Cost of goods available for sale	$8,90,700.00
Less: Ending finished goods inventory	$   48,600.00
Cost of goods sold	$8,42,100.00