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*Please type out the answer. The following data (in thousands of dollars) have b

ID: 2437558 • Letter: #

Question

*Please type out the answer.

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

$225

Manufacturing overhead

$220

Administrative expenses

$180

Selling expenses

$140

Raw materials inventory, beginning

$90

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


Prepare a Schedule of Cost of Goods Manufactured statement in the text box below.

Sales

$950

Purchases of raw materials

$170

Direct labor

$225

Manufacturing overhead

$220

Administrative expenses

$180

Selling expenses

$140

Raw materials inventory, beginning

$90

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

Explanation / Answer

Schedule of Cost of Goods Manufactured Direct materials: Raw materials inventory, beginning 90 Add: Purchases of raw materials 170 Total raw materials available 260 Deduct: Raw materials inventory, ending 80 Raw materials used in production 180 Direct labor 225 Manufacturing overhead applied to work in process inventory 220 Total manufacturing costs 625 Add: Beginning work in process inventory 30 655 Deduct: Ending work in process inventory 20 Cost of goods manufactured 635