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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.)

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 13E: Wyandotte Company provided the following information for the last calendar year: During the year,...
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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.) Start by calculating the direct materials used during the year. Hawthorn Industries Calculation of Direct Materials Used For Current Year Beginning raw materials inventory Plus: Purchases of direct materials Materials available for use Less: Ending raw materials inventory Direct materials used Compute the Cost of Goods Manufactured for the year. Hawthorn Industries Calculation of Cost of Goods Manufactured Compute the Cost of Goods Manufactured for the year. Hawthorn Industries Calculation of Cost of Goods Manufactured For Current Year Plus: Manufacturing costs incurred Less: Cost of goods manufactured $ $ 18,000 66,000 84,000 16,000 68,000
Transcribed Image Text: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.) Start by calculating the direct materials used during the year. Hawthorn Industries Calculation of Direct Materials Used For Current Year Beginning raw materials inventory Plus: Purchases of direct materials Materials available for use Less: Ending raw materials inventory Direct materials used Compute the Cost of Goods Manufactured for the year. Hawthorn Industries Calculation of Cost of Goods Manufactured Compute the Cost of Goods Manufactured for the year. Hawthorn Industries Calculation of Cost of Goods Manufactured For Current Year Plus: Manufacturing costs incurred Less: Cost of goods manufactured $ $ 18,000 66,000 84,000 16,000 68,000
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