Question

Cost of Goods Manufactured

Slapshot Company makes ice hockey sticks. During the month of June, the company purchased $128,000 of materials. Also during the month of June, Slapshot Company incurred direct labor cost of $177,000 and manufacturing overhead of $237,000. Inventory information is as follows:

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

Required:

  Calculate the cost of goods manufactured for the month of June.

caluclate late the cost of one hockey stick assuming that 1,900 sticks were completed during June. Round your answer to the nearest cent.
per hockey stick

Cost of Goods Sold

Slapshot Company makes ice hockey sticks. During the month of June, 1,900 sticks were completed at a cost of goods manufactured of $536,000. Suppose that on June 1, Slapshot had 660 units in finished goods inventory costing $160,000 and on June 30, 930 units in finished goods inventory costing $215,000.

. Prepare a cost of goods sold statement for the month of June.

Slapshot Company
Cost of Goods Sold Statement
For the Month of June
	$fill in the blank e04f39f5d01b004_2
	fill in the blank e04f39f5d01b004_4
	fill in the blank e04f39f5d01b004_6
	$fill in the blank e04f39f5d01b004_8

  Calculate the number of sticks that were sold during June.

Answer 1

1) Cost of goods manufactured

Beginning material	48000
Material purchase	128000
Less: Ending material	-45000
Material used	131000
Direct labor	177000
Manufacturing overhead	237000
Total manufacturing cost	545000
Beginning WIP	65000
Less: Ending WIP	-63000
Cost of goods manufactured	547000

Cost of one hockey sticks = 547000/1900 = 287.89

2) Prepare a cost of goods sold statement for the month of June.

Slapshot Company
Cost of Goods Sold Statement
For the Month of June
Beginning finished goods	160000
Cost of goods manufactured	536000
Ending finished goods	-215000
cost of goods sold	481000

Sale unit = 660+900-930 = 630 Units