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(TCO A) The following data (in thousands of dollars) have been taken from the accounting records of Larden

Corporation for the just-completed year.


Sales
Student
Answer:

Ans 1: Direct Materials: Beginning raw materials inventory ... $70 Add: Purchases of raw materials
$170 Raw materials available for use . $240 Deduct: Ending raw materials inventory. $80 Raw materials
used in production $160 Direct labor.... $210 Manufacturing
overhead... $220 Total Manufacturing Cost.... $590 Add: Beginning work in process
Purchases of raw materials
inventory .. $30 $620 Deduct: Ending work in process inventory ... $20 Cost of goods manufactured
$600
Direct labor
Manufacturing overhead
Administrative expenses
Selling expenses
Raw materials inventory, beginning
Raw materials inventory, ending
Work-in-process inventory, beginning
Work-in-process inventory, ending
Finished goods inventory, beginning
Finished goods inventory, ending
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Instructor
Explanation
:

Schedule of Cost of Goods Manufactured for the Larden Corp.


Direct materials:
Beginning raw materials inventory

$70

Add: purchases raw material

170

Raw materials available for use

240

Deduct ending raw materials

80

Raw materials used in production

160

Direct labor

210

Manufacturing overhead

220

Total manufacturing costs

590

Add beginning work-in-process inventory

30
620

Deduct ending work-in-process inventory


Cost of goods manufactured

20
600

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