Question

ustries is calculating its Cost of Goods Manufactured at​ year-end. Frasier's accounting records show the​ following: $15,000 The Raw Materials Inventory account had a beginning balance of $ 15 comma 000 and an ending balance of $ 16 comma 000. During the​ year, the company purchased $ 65 comma 000 of direct materials. Direct labor for the year totaled $ 131 comma 000​, while manufacturing overhead amounted to $ 146 comma 000. The Work in Process Inventory account had a beginning balance of $ 21 comma 000 and an ending balance of $ 22 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= $340

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= $21

Direct materials = beginning inventory + purchase - ending inventory= 15+ 65 - 16 = 64

Direct labor= 131

Manufactured overhead= 146

Ending work in progress= 22

Cost of good manufactured= 21 + 64 + 131 + 146 - 22= $340