Question

Sheridan Company reported the following year-end information: Beginning work in process inventory$1080000 Beginning raw materials inventory300000 Ending work in process inventory900000 Ending raw materials inventory480000 Raw materials purchased950000 Direct labor850000 Manufacturing overhead820000 Sheridan Company's cost of goods manufactured for the year is

Answer 1

Answer:

$1,800,000

Explanation:

Calculation for what Sheridan Company's cost of goods manufactured for the year is

First step is to calculate Direct material used

Direct material used = 300,000 + 950,000 - 480,000

Direct material used= 770,000

Now let calculate cost of goods manufactured for the year using this formula

Cost of Goods Manufactured for the year= Direct Material Used + Direct Labor + Manufacturing Overhead + Opening Work - Closing Work

Cost of Goods Manufactured for the year= 770,000 + 850,000 + 820,000 + 1,080,000 - 900,000

Cost of Goods Manufactured for the year= $1,800,000

Therefore Sheridan Company's cost of goods manufactured for the year is $1,800,000