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

Question

Quizplus · Accepted Answer

To calculate the cost of goods manufactured, we start by calculating the total manufacturing costs, which include direct materials used, direct labor, and manufacturing overhead. 1. Direct Materials Used = Beginning Raw Materials Inventory + Raw Materials Purchased - Ending Raw Materials Inventory = $300,000 + $960,000 - $480,000 = $780,000.2. Add Direct Labor = $900,000.3. Add Manufacturing Overhead = $720,000.Total Manufacturing Costs = $780,000 (Direct Materials Used) + $900,000 (Direct Labor) + $720,000 (Manufacturing Overhead) = $2,400,000.Then, we adjust for the change in work in process inventory to find the cost of goods manufactured:Cost of Goods Manufactured = Total Manufacturing Costs + Beginning Work in Process Inventory - Ending Work in Process Inventory = $2,400,000 + $1,080,000 - $900,000 = $2,580,000.

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