Laflin Company reported the following year-end information: $$\begin{array} { l r }
\text { Beginning work in process inventory } & \$ 1,080,000 \
\text { Beginning raw materials inventory } & 300,000 \
\text { Ending work in process inventory } & 900,000 \
\text { Ending raw materials inventory } & 480,000 \
\text { Raw materials purchased } & 960,000 \
\text { Direct labor } & 900,000 \
\text { Manufacturing overhead } & 720,000
\end{array}$$ Laflin Company's cost of goods manufactured for the year is

Question

Laflin Company reported the following year-end information: $$\begin{array} { l r } 
\text { Beginning work in process inventory } & \$ 1,080,000 \
\text { Beginning raw materials inventory } & 300,000 \
\text { Ending work in process inventory } & 900,000 \
\text { Ending raw materials inventory } & 480,000 \
\text { Raw materials purchased } & 960,000 \
\text { Direct labor } & 900,000 \
\text { Manufacturing overhead } & 720,000
\end{array}$$ Laflin Company's cost of goods manufactured for the year is

Quizplus · Accepted Answer

The cost of goods manufactured is calculated as: Beginning WIP Inventory + Total Manufacturing Costs - Ending WIP Inventory. Total Manufacturing Costs = Direct Materials Used + Direct Labor + Manufacturing Overhead. Direct Materials Used = Beginning Raw Materials Inventory + Raw Materials Purchased - Ending Raw Materials Inventory. Plugging in the values: Direct Materials Used = $300,000 + $960,000 - $480,000 = $780,000. Total Manufacturing Costs = $780,000 + $900,000 + $720,000 = $2,400,000. Cost of Goods Manufactured = $1,080,000 + $2,400,000 - $900,000 = $2,580,000.

Laflin Company Reported the Following Year-End Information Laflin Company's Cost of Goods Manufactured for the Year Is