Problem 2-6 Detemining Cost of Goods Sold Howard Manufacturing Corporation incurred direct labor costs of $453,600, and its total cost of goods manufactured was $1,480,000 for 1990. Manufacturing overhead costs are a constant percentage of direct labor costs. The beginaing inventories in- cluded raw materials ($90,000), work in process ($99,600), and finished goods ($150,000). The ending inventories include the following costs: Raw Work in Finished Materials Process Goods Raw malerials Direct labor $ 34,020 30,600 39,780 $104,400 $94,000 $49,860 49,800 Manufacturing overhead Total ending inventory $94,000 Required: Prepare a schedule showing the cost of goods sold for 1990.
Problem 2-6 Detemining Cost of Goods Sold Howard Manufacturing Corporation incurred direct labor costs of $453,600, and its total cost of goods manufactured was $1,480,000 for 1990. Manufacturing overhead costs are a constant percentage of direct labor costs. The beginaing inventories in- cluded raw materials ($90,000), work in process ($99,600), and finished goods ($150,000). The ending inventories include the following costs: Raw Work in Finished Materials Process Goods Raw malerials Direct labor $ 34,020 30,600 39,780 $104,400 $94,000 $49,860 49,800 Manufacturing overhead Total ending inventory $94,000 Required: Prepare a schedule showing the cost of goods sold for 1990.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Solve Problem 2.6
Transcribed Image Text:Finis hed
Goods
Raw
Work in
Materials
Process
$ 60,000
52,800
79,200
$192,000
Raw materials
$44,000
44,800
$176,000
Direct labor
Manufacturing overhead
Total encing inventory
$176,000
Required:
Prepare a schedule showing the cost of goods sold for 1990.
Problem 2-6 Detemining Cost of Goods Sold
Howard Manufacturing Corporation incurred direct labor costs of $453,600, and its
total cost of goods manufactured was $1,480,000 for 1990. Manufacturing overhead
costs are a constant percentage of direct labor costs. The beginuing inventories in-
cluded raw materials ($90,000), work in process ($99,600), and finished goods
($150,000). The ending inventories include the following costs:
Raw
Materials
Work in
Finished
Process
Goods
Raw malerials
$94,000
$ 34,020
30,600
39,780
$104,400
$49,860
49,800
Direct labor
Manufacturing overhead
Total ending inventory
7.
$94,000
Required:
Prepare a schedule showing the cost of goods sold for 1990.
Problem 2-7 Manufacluring Income Statement
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