Cost of Goods ManufacturedSlapshot Company makes ice hockey sticks. During the month ofJune, the...Cost...

Free

50.1K

Verified Solution

Question

Accounting

Cost of Goods Manufactured
Slapshot Company makes ice hockey sticks. During the month ofJune, the company purchased $123,000 of materials. Also during themonth of June, Slapshot Company incurred direct labor cost of$157,000 and manufacturing overhead of $204,000. Inventoryinformation is as follows:
June 1 June 30
Materials $48,000 $45,000
Work in process 65,000 63,000
Required:
1. Calculate the cost of goods manufactured forthe month of June.
$
2. Calculate the cost of one hockey stickassuming that 1,900 sticks were completed during June. Round youranswer to the nearest cent.
$per hockey stick

Answer & Explanation Solved by verified expert

3.9 Ratings (496 Votes)

Q. 1)

Material consumed = June 1 stock + Purchase – June 30 stock

= 48,000 + 123,000 – 45,000

= 126,000

Prime cost = Material consumed + Direct labor

= 126,000 + 157,000

= 283,000

Cost of goods manufactured = Prime cost + Manufacturing overhead + June 1 work-in-process – June 30 work-in-process

= 283,000 + 204,000 + 65,000 – 63,000

= $489,000 (Answer)

Q. 2)

Cost of one stick = Cost of goods manufactured / Number of units

= $489,000 / 1,900

= 257.37 (Answer)

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

In: AccountingCost of Goods ManufacturedSlapshot Company makes ice hockey sticks. During the month ofJune, the...Cost of Goods ManufacturedSlapshot Company makes ice hockey sticks. During the month ofJune, the company purchased $123,000 of materials. Also during themonth of June, Slapshot Company incurred direct labor cost of$157,000 and manufacturing overhead of $204,000. Inventoryinformation is as follows:June 1June 30Materials$48,000 $45,000 Work in process65,000 63,000 Required:1. Calculate the cost of goods manufactured forthe month of June.$2. Calculate the cost of one hockey stickassuming that 1,900 sticks were completed during June. Round youranswer to the nearest cent.$per hockey stick

	June 1	June 30
Materials	$48,000	$45,000
Work in process	65,000	63,000