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Lone Star Leather Company - COGS, Costs

Selected data concerning the past year's operations of the Lone Star Leather Company are as follows:

Inventories Beginning Ending
Raw Material 142,000 162,000
Work in Process 160,000 60,000
Finished Goods 180,000 220,000
Other Data:
Direct Material Used 652,000
Total manufacturing costs charged to
production during the year (includes direct
material, direct labor, and manufacturing overhead
applied at a rate of 60% of direct-labor cost) 1,372,000
Cost of goods available for sale 1,652,000
Selling and administrative expenses 63,000

1. What was the direct-labor cost charged to production during the year?
2. What was the cost of goods manufactured during the year?
3. What was the cost of goods sold during the year?

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Solution Preview

Selected data concerning the past year's operations of the Lone Star Leather Company are as follows:

Inventories Beginning Ending
Raw Material 142,000 162,000
Work in Process 160,000 60,000
Finished Goods 180,000 220,000
Other Data:
Direct Material Used 652,000
Total manufacturing costs charged to
production during the year (includes direct
...

Solution Summary

This solution is comprised of a detailed explanation to answer what was the direct-labor cost charged to production during the year, what was the cost of goods manufactured during the year, and what was the cost of goods sold during the year.

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