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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?

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.

$2.19