Question

Justine Industries is calculating its Cost of Goods Manufactured at​ year-end. Justine's accounting records show the​ following: The Raw Materials Inventory account had a beginning balance of $ 18 comma 000 and an ending balance of $ 19 comma 000. During the​ year, the company purchased $ 58 comma 000 of direct materials. Direct labor for the year totaled $ 120 comma 000​, while manufacturing overhead amounted to $ 149 comma 000. The Work in Process Inventory account had a beginning balance of $ 27 comma 000 and an ending balance of $ 15 comma 000. Assume that Raw Materials Inventory contains only direct materials. Compute the Cost of Goods Manufactured for the year. ​(Hint​: The first step is to calculate the direct materials used during the​ year.)

Answer 1

Cost of good manufactured= $338

Step-by-step explanation:

To calculate the cost of manufactured goods we need to use the following formula:

Cost of good manufactured= Beginning work in progress+ direct materials of the period + direct labor + manufactured overhead - ending work in progress

Beginning work in progress= $27

Direct materials = beginning inventory + purchase - ending inventory= 18+ 58- 19= 57

Direct labor= 120

Manufactured overhead=149

Ending work in progress= 15

Cost of good manufactured= 27+57+120+149-15=$338