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The following T-account cost data is for the Lake Company for the current production year. Raw Materials Inventory Beg Bal. 80 590 Work-in-Process Inventory
The following T-account cost data is for the Lake Company for the current production year. Raw Materials Inventory Beg Bal. 80 590 Work-in-Process Inventory 60 Beg Bal. 50 520 End. Bal. 90 Direct Labor Beg Bal. 700 Finished Goods Inventory Beg Bal. 80 End Bal. 70 840 End. Bal. 35 Factory Overhead 60 840 300 280 220 Additional Information: Total Manufacturing Costs = $2,060 Hints: The $60 credit to Raw Materials Inventory is assigned to Factory Overhead, and not a cost for WIP. To calculate some of the you need to put the T-accounts in balance by using the account ending balances. Required: Using the above T-Account data and the additional information, answer the following questions: (a) What was the amount of each of the items (Direct Materials, Direct Labor, and MO) that are considered part of total manufacturing costs of $2,060? (b) What was the amount of cost of goods manufactured? (c) What was the amount of cost of goods available for sale? (d) What was the amount of cost of goods sold?
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