At December 31, 2016, the end of its fiscal year, Lederman Manufacturing Corporation collected...

Question:

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 3130,000
Work in process inventory, January 160,000
Work in process inventory, December 3182,000
Finished goods inventory, January 1102,000
Finished goods inventory, December 3172,000
Net delivered cost of materials purchased250,000
Direct labor296,000
Indirect material24,000
Indirect labor74,000
Factory supplies used20,000
Factory depreciation130,000
Factory repairs and maintenance42,000
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

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_Lederman Manufacturing

Schedule of Cost of Goods Manufactured for 2016

Cost
Direct Materials
Beginning raw materials $50,000
Add: Purchases 25...

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Cost of Goods: Definition & Calculation

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Chapter 3 / Lesson 13
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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.


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