LeMans Company produces specialty papers at its Fox Run plant. At the beginning of June, the following information was supplied by its accountant:Direct materials inventory $62,400Work-in-process inventory 33,900Finished goods inventory 55,600During June, direct labor cost was $143,000, direct materials purchases were $346,000, and the total overhead cost was $375,800. The inventories at the end of June were:Direct materials inventory $63,000Work-in-process inventory 37,500Finished goods inventory 50,800Required:1. Prepare a cost of goods manufactured statement for June.2. Prepare a cost of goods sold schedule for June.

Answer and Explanation:

1. The preparation of the cost of goods manufactured statement as follows:

Statement of Cost of Goods Manufactured

Direct Material:

Beginning Raw material Inventory  $62,400

Add: Cost of raw material purchased  $346,000

Material available  $408,400

Less: Ending Raw material inventory  -$63,000

Direct Materials used in Production  $345,400

Direct Labor Cost   $143,000

Total overhead cost  $375,800

Total Manufacturing cost added  $864,200

Add: Opening Work in Progress  $33,900

Less: Closing Work in Progress  -$37,500

Cost of Goods manufactured  $860,600

2. The preparation of a Cost of Goods Sold is presented below:

Statement of Cost of Goods Sold

Opening Finished goods inventory  $55,600

Add: Cost of Goods manufactured  $860,600

Total goods available for Sale  $916,200

Less: Closing finished goods inventory  -$50,800

Cost of Goods Sold  $865,400