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Cost of Goods Manufactured Slapshot Company makes ice hockey sticks. During the month of June, the...

Cost of Goods Manufactured

Slapshot Company makes ice hockey sticks. During the month of June, the company purchased $123,000 of materials. Also during the month of June, Slapshot Company incurred direct labor cost of $157,000 and manufacturing overhead of $204,000. Inventory information is as follows:

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

Required:

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

Solutions

Expert Solution

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)

ekkarill92 answered 8 months ago
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