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Cost of Goods Manufactured Slapshot Company makes ice hockey sticks. During the month of June, the company purchased $132,000 of materials. Also during the month of June, Slapshot Company incurred direct labor cost of $113,000 and manufacturing overhead of $187,000. Inventory information is as follows: Required: 1. Calculate the cost of goods manufactured for the month of June. 2. Calculate the cost of one hockey stick assuming that 1,900 sticks were completed during June.

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Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
Publisher: Cengage Learning
ISBN: 9781337115773
BuyFind

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
Publisher: Cengage Learning
ISBN: 9781337115773

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Chapter 2, Problem 22BEA
Textbook Problem
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Cost of Goods Manufactured

Slapshot Company makes ice hockey sticks. During the month of June, the company purchased $132,000 of materials. Also during the month of June, Slapshot Company incurred direct labor cost of $113,000 and manufacturing overhead of $187,000. Inventory information is as follows:

Chapter 2, Problem 22BEA, Cost of Goods Manufactured Slapshot Company makes ice hockey sticks. During the month of June, the

Required:

  1. 1. Calculate the cost of goods manufactured for the month of June.
  2. 2. Calculate the cost of one hockey stick assuming that 1,900 sticks were completed during June.

Expert Solution

1.

To determine

Calculate the amount of cost of goods manufactured for June.

Explanation of Solution

Cost of Goods Manufactured:

Cost of goods manufactured can be defined as the total amount of cost incurred by a company to produce the goods and transfer the completed goods to the finished goods inventory.

Use the following formula to calculate the cost of goods manufactured:

Cost of goods manufactured=(Direct material used+Direct labor+Manufacturing overhead+Beginning WIPEnding WIP)

Substitute $135,000 for direct material used, $113,000 for direct labor, $187,000 for manufacturing overhead, $65,000 for beginning WIP (work in process), and $63,000 for ending WIP in the above formula.

Cost of goods manufactured=($135,000+$113,000+$187,000<

Expert Solution

2.

To determine

Calculate the cost of one hockey stick.

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Chapter 2 Solutions

Managerial Accounting: The Cornerstone of Business Decision-Making
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