Question

Calculate the cost of goods manufactured using the following information: Direct materials $ 299,300 Direct labor 132,800 Factory overhead costs 264,800 General and administrative expenses 86,300 Selling expenses 49,600 Work in Process inventory, January 1 119,300 Work in Process inventory, December 31 126,700 Finished goods inventory, January 1 232,900 Finished goods inventory, December 31 239,500

Answer 1

Cost of good manufactured= $1689500

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= $1119300

Direct materials = beginning inventory + purchase - ending inventory= 299300

Direct labor= 132800

Manufactured overhead=264800

Ending work in progress= 126700

Cost of good manufactured= 1119300+ 299300+ 132800+264800-126700= $1689500