Question

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 $513,000. 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.

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

Slapshot Company
Cost of Goods Sold Statement
For the Month of June
Cost of goods manufactured	$
Finished goods inventory, June 1
Finished goods inventory, June 30
Cost of goods sold	$

Feedback

Set up T account for finished goods inventory account.

2. Calculate the number of sticks that were sold during June.
_______ units

Answer 1

Answer 1.

Slapshot Company Cost of Goods Sold Statement For the Month of June	.
Cost of goods manufactured ( 1900 units )	$ 513,000
Add: Finished goods inventory, June 01 ( 660 units )	160,000
Less: Finished goods inventory, June 30 (930 units )	215,000
Cost of goods sold	$ 458,000

2. No. of sticks sold during the month of June;

= units completed during the month = 1900 units

+ units in finished goods, June 01 = 660 units

– units in finished goods, June 30 = 930 units

= sticks sold during the month of June = 1900 + 660 – 930 = 1,630 units