Hawthorn Industries is calculating its Cost of Goods Manufactured at year-end. The company's accounting records showthe following: The Raw Materials Inventory account had a beginning balance of $18,000 and an ending balance of$16,000. During the year, the company purchased $66,000 of direct materials. Direct labor for the year totaled$120,000, while manufacturing overhead amounted to $161,000. The Work in Process Inventory account had abeginning balance of $30,000 and an ending balance of $19,000. Assume that Raw Materials Inventory contains onlydirect materials. Compute the Cost of Goods Manufactured for the year. (Hint: The first step is to calculate the directmaterials used during the year.)Start by calculating the direct materials used during the year.Hawthorn IndustriesCalculation of Direct Materials UsedFor Current YearBeginning raw materials inventoryPlus: Purchases of direct materialsMaterials available for useLess: Ending raw materials inventoryDirect materials usedCompute the Cost of Goods Manufactured for the year.Hawthorn IndustriesCalculation of Cost of Goods ManufacturedCompute the Cost of Goods Manufactured for the year.Hawthorn IndustriesCalculation of Cost of Goods ManufacturedFor Current YearPlus: Manufacturing costs incurredLess:Cost of goods manufactured$$18,00066,00084,00016,00068,000

Cost of goods manufactured - Cost of Goods Manufactured is the total cost incurred for manufactured…

Hawthorn 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 $18,000 and an ending balance of $16,000. During the year, the company purchased $66,000 of direct materials. Direct labor for the year totaled $120,000, while manufacturing overhead amounted to $161,000. The Work in Process Inventory account had a beginning balance of $30,000 and an ending balance of $19,000. 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.)

Hawthorn 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 $18,000 and an ending balance of $16,000. During the year, the company purchased $66,000 of direct materials. Direct labor for the year totaled $120,000, while manufacturing overhead amounted to $161,000. The Work in Process Inventory account had a beginning balance of $30,000 and an ending balance of $19,000. 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.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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