Question

Slapshot Company makes ice hockey sticks. During the month of June, the company purchased $127,000 of materials. Also during the month of June, Slapshot Company incurred direct labor cost of $171,000 and manufacturing overhead of $222,000. Inventory information is as follows:

June 1 June 30

Materials $48,000 $45,000

Work in process 65,000 63,000

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

2. Calculate 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

Answer 1

Answer.

1. Calculation for Cost of goods manufactured for the month of June:

Materials, June 01	$ 48,000	.
Materials purchases	127,000	.
Less: Materials, June 30	45,000	.
Materials used in production	.	$ 130,000
Direct labor	.	171,000
Manufacturing overhead	.	222,000
Add: Work-in-progress, June 1	65,000	.
Less: Work-in-progress, June 30	63,000	..
Cost of goods manufactured during the month	.	$ 525,000

2. Cost per ice-hockey stick =

No. of sticks completed during the month = 1900

Cost of stick manufactured during the month = $ 525,000

Cost per stick = 525,000 / 1,900 = $ 276.32