Final answer:
The cost of goods manufactured for SunTex Limited in August is $240,000. This was calculated by adding direct materials, direct labor, and manufacturing overhead to get total manufacturing costs, then adjusting for beginning and ending work-in-process inventory.
Step-by-step explanation:
The cost of goods manufactured for SunTex Limited in August can be calculated by adding the total manufacturing costs to the beginning work-in-process inventory and then subtracting the ending work-in-process inventory. The total manufacturing costs include the direct materials, direct labor, and manufacturing overhead expenses.
First, we sum up the direct materials, direct labor, and manufacturing overhead to get the total manufacturing costs:
- Direct materials: $125,000
- Direct labor: $80,000
- Manufacturing overhead: $40,000
Total manufacturing costs = Direct materials + Direct labor + Manufacturing overhead
Total manufacturing costs = $125,000 + $80,000 + $40,000 = $245,000
Next, we include the work-in-process inventories to find out the cost of goods manufactured:
Cost of goods manufactured = Total manufacturing costs + Beginning work-in-process inventory - Ending work-in-process inventory
Cost of goods manufactured = $245,000 + $50,000 - $55,000
Cost of goods manufactured = $295,000 - $55,000 = $240,000
Therefore, the cost of goods manufactured in August is $240,000.