Question

Determine Fuller Manufacturing's cost of goods manufactured for the month ended October 31.

Cost of Goods Manufactured for a Manufacturing Company

The following information is available for Fuller Manufacturing Company for the month ending October 31:

Cost of direct materials used in production $121,700 Direct labor $146,000
Work in process inventory, October 1 $54,800
Work in process inventory, October 31 $74,200
Total factory overhead $66,900

Answer 1

Fuller Manufacturing's cost of goods manufactured for the month ending October 31 is $315,200, calculated by adding the opening work in process inventory to the total manufacturing costs and subtracting the ending work in process inventory.

Step-by-step explanation:

To determine Fuller Manufacturing's cost of goods manufactured for the month ended October 31st, we first need to understand the calculation of cost of goods manufactured (COGM). COGM is the total cost of producing products and getting them ready for sale, which includes the cost of direct materials, direct labor, and factory overhead. The formula to calculate COGM is:

Begin COGM = Opening Work in Process Inventory + Total Manufacturing Costs – Ending Work in Process Inventory

Total Manufacturing Costs = Cost of Direct Materials Used + Direct Labor + Factory Overhead

Inserting the provided numbers:

• Cost of Direct Materials Used = $121,700
• Direct Labor = $146,000
• Factory Overhead = $66,900
• Opening Work in Process Inventory = $54,800
• Ending Work in Process Inventory = $74,200

Now, we calculate Total Manufacturing Costs:

Total Manufacturing Costs = $121,700 (Direct Materials) + $146,000 (Direct Labor) + $66,900 (Factory Overhead) = $334,600

Then we calculate the COGM:

COGM = $54,800 (Opening WIP Inventory) + $334,600 (Total Manufacturing Costs) - $74,200 (Ending WIP Inventory) = $315,200

Therefore, Fuller Manufacturing's COGM for the month ending October 31 is $315,200.