Question
Lawrence Industries is calculating its Cost of Goods Manufactured at year-end. The company's accounting records show the following: The Raw Materials Inventory account had a
Lawrence Industries is calculating its Cost of Goods Manufactured at year-end. The company's accounting records show the following: The Raw Materials Inventory account had a beginning balance of $20,000 and an ending balance of $17,000. During the year, the company purchased $54,000 of direct materials. Direct labor for the year totaled $131,000, while manufacturing overhead amounted to $161,000. The Work in Process Inventory account had a beginning balance of $24,000 and an ending balance of $23,000. 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.)
Start by calculating the direct materials used during the year.
Lawrence Industries | ||
Calculation of Direct Materials Used | ||
For Current Year | ||
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Plus: |
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Less: |
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Direct materials used |
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