Question

The following information is from ABC Company’s general ledger: Beginning and ending inventories, respectively, for raw materials were $9,600 and $11,600 and for work in process were $21,600 and $23,600. Raw material purchases and direct labor costs incurred were $37,600 each, and manufacturing overhead applied amounted to $21,600. Required: Prepare a statement of cost of goods manufactured for ABC Company

Answer 1

Cost of Goods Manufactured = $92,800

Step-by-step explanation:

Cost of goods manufactured, will be computed based on First In First Out FIFO

Cost of goods manufactured = Opening stock + Purchases + Labor Cost + Manufacturing Overhead - Closing

Total Opening stock = Raw Material + Work In Progress

= $9,600 + $21,600 = $31,200

Purchases = $37,600

Labor Cost = $37,600

Manufacturing Overhead = $21,600

Closing Stock = $11,600 + $23,600 = $35,200

Putting values in above we have,

$31,200 + $37,600 + $37,600 + $21,600 - $35,200 = $92,800

Final Answer

Cost of Goods Manufactured = $92,800