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

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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 1June 30
Materials$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

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)
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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

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