Question

Homework: HW #1 -Chapter 2 Save Score: 0.36 of 1 pt 6 of 10 (6 complete) ▼ HW Score: 53.64%, 5.36 of 10 pts E2-25A (similar to) Question Help Sharpland Industries is calculating its Cost of Goods Manufactured at year-end. Sharpland's accounting records show the following: The Raw Materials Inventory account had a beginning balance of $11,000 and an ending balance of $18,000. During the year, the company purchased $63,000 of direct materials. Direct labor for the year totaled $129,000, while manufacturing overhead amounted to $157,000. The Work in Process Inventory account had a beginning balance of $27,000 and an ending balance of $21,000. Assume that Raw Materials Inventory contains only direct materials. Compute the Cost of Goods Manufactured for the year. (Hint: The first step is to calculate the direct materials used during the year.) Materials available for use Less: Ending raw materials inventory Direct materials used Compute the Cost of Goods Manufactured for the year 74,000 18,000 56,000 Sharpland Industries Calculation of Cost of Goods Manufactured For Current Year Plus: Manufacturing costs incurred Less Cost of goods manufactured

Answer 1

Sharpland Industries
Calculation of Cost of Goods Manufactured
For Current Year
Work in process inventory, beginning balance	27000
Plus: Manufacturing costs incurred
Direct materials	56000
Direct labor	129000
Manufacturing overheads	157000
Total cost of work in process inventory	369000
Less: Work in process inventory, ending balance	21000
Cost of goods manufactured	348000