Question

Jacques has been asked to calculate the cost of goods manufactured for Sully Enterprises for fiscal year 2015. He has accumulated the following values. Beginning work in process inventory, $45,681 Ending work in process inventory, $55,374 Beginning raw materials inventory, $94,782 Ending raw materials inventory, $85,377 Raw materials purchased, $1,487,237 Delivery vehicle purchased, $28,649 282,100 man-hours of factory labor at $21.50/hour 18,600 man-hours of factory oversight labor at $32.40/hour Administrative salaries, $495,000 Factory utilities, $22,300 Factory depreciation, $12,400 Factory repairs, $64,450 What value should Jacques find for the cost of goods manufactured?

A : $8,253,889
B : $7,651,249
C : $8,282,538
D : $8,777,538

Answer 1

A $8,253,889

Step-by-step explanation:

Schedule of Cost of goods manufactured

for the fiscal year 2015

Direct Material $

Beginning Raw Material Inventory 94,782

Add:Purchases of Raw Material 1,487,237

Less: Ending Raw Material (85,377)

Direct Material Used in Production 1,496,642

Direct labour

Factory Labour

(282,100×21.5) 6,065,150

Oversight Labour

(18,600×32.4) 602,640

6,667,790

Add: Manufacturing Overhead

Factory Utilities 22,300

Factory Depreciation 12,400

Factory Repairs 64,450

99,150

Add:Beginning WIP 45,681

Less:Ending WIP (55,374)

Cost Of Goods Manufactured fpr the Year 8,253,889