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, calculated by summing direct materials, direct labor, manufacturing overhead, beginning work in process inventory and subtracting the ending work in process inventory.

Step-by-step explanation:

To calculate the cost of goods manufactured (COGM) for the month, we need to add up all the manufacturing costs and adjust for the change in work in process inventory. The total manufacturing costs include direct materials, direct labor, and manufacturing overhead applied to Work in Process. The formula to calculate COGM is:

COGM = Direct Materials + Direct Labor + Manufacturing Overhead + Beginning WIP Inventory - Ending WIP Inventory

Using the data provided:

• Direct Materials: $29,000
• Direct Labor: $58,000
• Manufacturing Overhead: $82,000
• Beginning WIP Inventory: $66,000
• Ending WIP Inventory: $57,000

Now we calculate COGM:

COGM = $29,000 + $58,000 + $82,000 + $66,000 - $57,000 = $178,000

Therefore, the cost of goods manufactured for the month on the Schedule of Cost of Goods Manufactured is $178,000.