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Horngren'S Financial And Managerial Accounting
Found in: Page 888

Short Answer

Computing cost of goods manufactured

Use the following inventory data for Caddy Golf Company to compute the cost of goods manufactured for the year:

Direct Materials Used $ 12,000

Manufacturing Overhead 21,000

Work-in-Process Inventory:

Beginning Balance 1,000

Ending Balance 5,000

Direct Labor 9,000

Finished Goods Inventory:

Beginning Balance 18,000

Ending Balance 4,000

The cost of goods manufactured is computed as $38,000

See the step by step solution

Step by Step Solution

Definition of direct material used

Direct materials are defined as raw materials which are used in or associated with the production process directly.

Computation of cost of goods manufactured

Caddy Golf Company

Cost of goods manufactured

Amount ($)

Amount ($)

Work in Process, Beginning


Direct Material Used


Direct Labor


Manufacturing Overhead


Total manufacturing cost incurred during the year


Total manufacturing costs to account for


Work in process, Ending


Cost of goods manufactured


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