Question

Use the following inventory data for Caddy Golf Company to compute the cost of goods manufactured for the​ year: Data TableDirect Materials Used $ 12,000 Manufacturing Overhead 21,000Work-in-Process Inventory: Beginning Balance 1,000Ending Balance 5,000Direct Labor 9,000Finished Goods Inventory: Beginning Balance 18,000Ending Balance 4,000

Answer 1

Cost of goods manufactured 38,000

Cost of Goods Sold 52,000

Step-by-step explanation:

First we calcualte the cost added during the period:

Direct Materials used 12,000

Direct Labor 9,000

Manufacturing Overhead 21,000

Total cost added 42,000

Then, we calculate the cost of goods manufactured or trasnferred-out

WIP beginning balance 1,000

Cost added during the period 42,000

WIP ending balance (5,000)

Cost of goods manufactured 38,000

Finally, we calcualte the cost of goods sold

Finished goods beginning 18,000

Cost of goods manufactured 38,000

ending (4,000)

Cost of Goods Sold 52,000