Question

Borchardt Corporation has provided the following data concerning last month’s operations.Direct materials $ 29,000

Direct labor $ 58,000
Manufacturing overhead applied to Work in Process $ 82,000
Beginning work in process inventory $ 66,000 Ending work in process inventory $ 57,000
How much is the cost of goods manufactured for the month on the Schedule of Cost of Goods Manufactured?

Answer 1

The cost of goods manufactured for Borchardt Corporation for the month is $178,000, after adding direct materials, direct labor, manufacturing overhead to the beginning inventory and subtracting the ending inventory.

Step-by-step explanation:

The cost of goods manufactured for the month is 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 direct materials, direct labor, and manufacturing overhead applied. Therefore, the calculation for the cost of goods manufactured would be:

• Direct Materials: $29,000
• Direct Labor: $58,000
• Manufacturing Overhead: $82,000
• Beginning Work in Process Inventory: $66,000
• Subtotal: $29,000 + $58,000 + $82,000 + $66,000 = $235,000
• Ending Work in Process Inventory: $57,000
• Cost of Goods Manufactured: $235,000 - $57,000 = $178,000