Question

Computing cost of goods manufactured

Consider the following partially completed schedules of cost of goods manufactured. Compute the missing amounts.

Banner, Inc. Larry’s Bakery Sports Gear

Beginning Work-in-Process Inventory \( (a) \) 40,800 \( 2,200

Direct Materials Used 14,400 35,900 (g)

Direct Labor 10,300 20,100 1,900

Manufacturing Overhead (b) 10,000 900

Total Manufacturing Costs Incurred during the Year 45,200 (d) (h)

Total Manufacturing Costs to Account for 55,400 (e) 8,300

Ending Work-in-Process Inventory (c) (25,500) (2,600)

Cost of Goods Manufactured \) 50,500 \( (f) \) (i)

Short answer

The required computation of the cost of goods manufactured is done.

Step-by-step solution

Step-by-Step SolutionStep 1 Definition of cost of goods manufactured

The cost of goods manufactured is defined as the manufacturing costs of the goods that are finished in the production process.

Computation of cost of goods manufactured

Computation of cost of goods manufactured
	Banner Inc	Larry’s Bakery	Sports Gear
Beginning Work-in-Process Inventory	A $10,200	$40,800	$2,200
Direct Material Used	$14,400	$35,900	G $3,300
Direct Labour	$10,300	$20,100	$1,900
Manufacturing Overhead	B $20,500	$10,000	$900
Total manufacturing cost incurred during the year	$45,200	D $66,000	H $6,100
Total manufacturing costs to account for	$55,400	E $106,800	$8,300
Ending work-in-process inventory	C -$4,900	-$25,500	-$2,600
Cost of goods manufactured	$50,500	F $81,300	I $5,700