Question

Beg. of Year End of Year Raw Materials Inventory $26000 $31,459 Work in process inventory $35000 $30,113 Finished goods inventory $14000 $28,663 Purchases of DM $73000 Direct Labor $43,853 Indirect Labor $40000 Insurance on plant $10000 Depreciation - plant building and equipment $12,294 Repairs and maintenance - plant $4,987 Marketing expenses $76000 General & administrative expenses $27,805 What is Cost of Goods Sold? (Be careful as values change with each attempt) (Input your answers without dollar signs or commas)

Answer 1

COGS= $168,899

Step-by-step explanation:

Giving the following information:

Beginning Raw Materials $26000

Ending Raw Materials $31,459

Beginning Work in process $35000

Ending WIP $30,113

Beginning Finished goods $14000

Ending Finished goods $28,663

Purchases of DM $73000

Direct Labor $43,853

Manufacturing overhead:

Indirect Labor $40000

Insurance on plant $10000

Depreciation - plant building and equipment $12,294

Repairs and maintenance - plant $4,987

Total= $67,281

First, we need to calculate the cost of goods manufactured:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 35000 + (26000 + 73000 - 31459) + 43853 + 67281 - 30113= 183,562

Now, we can calculate the cost of goods sold:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 14000 + 183562 - 28663= $168,899