At December 31, 2016, the end of its fiscal year, Lederman Manufacturing Corporation collected the following data for 2016.
|Materials inventory, January 1||$50,000|
|Materials inventory, December 31||30,000|
|Work in process inventory, January 1||60,000|
|Work in process inventory, December 31||82,000|
|Finished goods inventory, January 1||102,000|
|Finished goods inventory, December 31||72,000|
|Net delivered cost of materials purchased||250,000|
|Factory supplies used||20,000|
|Factory repairs and maintenance||42,000|
|Selling expenses (total)||124,000|
|Non-factory administrative expenses (total)||116,000|
Prepare a schedule of 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 cost of goods manufactured is calculated in by adding up the cost of the direct materials used, direct labor and overhead cost for the period and adjusting that for the work-in-process inventory levels.
Answer and Explanation: 1
Schedule of Cost of Goods Manufactured for 2016
|Beginning raw materials||$50,000|
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fromChapter 3 / Lesson 13
The cost of goods is the expenses used to produce products, provide services, or acquire inventory. Study the definition of cost of goods and how to calculate it in this lesson.