Question

Clarkson Corp., a lamp manufacturer, provided the following information for the year ended December 31, 2018: (Click the icon to view year-end information.) Requirements 1. Use the information to prepare a schedule of cost of goods manufactured. 2. What is the unit product cost if Clarkson manufactured 2,000 lamps for the year? Requirement 1. Use the information to prepare a schedule of cost of goods manufactured. Clarkson, Corp. Schedule of Cost of Goods Manufactured Year Ended December 31, 2018 Beginning Work-in-Process Inventory Direct Materials Used: Beginning Direct Materials 55.000 Purchases of Direct Materials 150.000 Direct Materials Available for Use Ending Direct Materials 27.000 nimet Materiale ind Choose from any list or enter any number in the input fields and then continue to the next question

Answer 1

1)
Clarkson, Corp. Schedule of Cost of Goods Manufactured Year Ended December 31, 2018
Beginning Work in process inventory			$ 106,000
Direct Materials Used:
- Beginning Raw materials	$ 55,000
- Purchases of Direct Materials	$ 150,000
Direct Materials available for Use	$ 205,000
Less: Ending Direct materials	($ 27,000)
Direct Materials Used		$ 178,000
Direct labor		$ 122,000
Manufacturing Overhead:
- Depreciation - Plant, Building and Equipment	$ 10,000
- Insurance on plant	$ 30,000
- Repairs and maintenance - Plant	$ 7,000
- Indirect labor	$ 34,000
Total Manufacturing Overhead		$ 81,000
Total Manufacturing Costs incurred during the year			$ 381,000
Total Manufacturing Costs to account for			$ 487,000
Ending Work in process inventory			($ 67,000)
Cost of Goods Manufactured			$ 420,000
2)
Cost per lamp         = Cost of Goods Manufactured / No. of Lamps manufactured         =   $ 420,000 / 2,000 lamps	$ 210
Cost per lamp =	$ 210