Question

Zoe Corporation has the following information for the month of March:Purchases $92,000Materials inventory, March 1 6,000Materials inventory, March 31 8,000Direct labor 25,000Factory overhead 37,000Work in process inventory, March 1 22,000Work in process inventory, March 31 23,500Finished goods inventory, March 1 21,000Finished goods inventory, March 31 30,000Sales 257,000Selling and administrative expenses 79,000Prepare a schedule of cost of goods manufactured. Enter all amounts as positive numbers."

Answer 1

cost of goods manufactured= $150,500

Step-by-step explanation:

Giving the following information:

Purchases $92,000

Materials inventory, March 1 6,000

Materials inventory, March 31 8,000

Direct labor 25,000

Factory overhead 37,000

Work in process inventory, March 1 22,000

Work in process inventory, March 31 23,500

To calculate the cost of goods manufactured, we need to use the following formula:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 22,000 + (6,000 + 92,000 - 8,000) + 25,000 + 37,000 - 23,500

cost of goods manufactured= $150,500