Problem 2-6 Determining Cost of Goods SoldHoward Manufacturing Corporation incurred direct labor costs of $453,600, and itstotal cost of goods manufactured was $1,480,000 for 1990. Manufacturing overbeadcosts 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:RawWork inFinished,MaterialsProcessGoods$49,86049,800$ 34,02030,60039,780$104,400-Raw materials$94,000Direct laborManufacturing overhead-Total ending inventory$94,000Required:Prepare a schedule showing the cost of goods sold for 1990.

Costs of goods sold are the value of the goods which has been sold by the company during the year,…

Answered: Required: Prepare a schedule showing…

Business

Accounting

Required: Prepare a schedule showing the cost of goods sold for 1990.

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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Question

Problem 2-6 Determining 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 overbead
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
$49,860
49,800
$ 34,020
30,600
39,780
$104,400-
Raw materials
$94,000
Direct labor
Manufacturing overhead-
Total ending inventory
$94,000
Required:
Prepare a schedule showing the cost of goods sold for 1990.

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