At December 31, 2016, the end of its fiscal year, Lederman Manufacturing Corporation collected the following data for 2016:
|Materials inventory, January 1||$25,000|
|Materials inventory, December 31||15,000|
|Work in process inventory, January 1||30,000|
|Work in process inventory, December 31||41,000|
|Finished goods inventory, January 1||51,000|
|Finished goods inventory, December 31||36,000|
|Net delivered cost of materials purchased||125,000|
|Factory supplies used||10,000|
|Factory repairs and maintenance||21,000|
|Selling expenses (total)||62,000|
|Non-factory administrative expenses (total)||58,000|
Prepare a schedule of the cost of goods manufactured and sold for Lederman Manufacturing Corporation for the year ended December 31, 2016, assuming that there were no other manufacturing overhead items than those listed above.
Cost of Goods Manufactured:
The product costs of manufacturing companies include direct materials, direct labor, and manufacturing overhead costs. These costs are summarized on the schedule of the cost of goods manufactured to calculate the amount added to the Finished Goods inventory.
Answer and Explanation: 1
We only include manufacturing costs in the schedule. Selling and administrative expenses are excluded. Note how we consistently add the cost of...
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fromChapter 2 / Lesson 10
Learn the definition of the cost of goods sold and the formula used to calculate it. Also, learn how the cost of goods sold is calculated using examples.