Question

For fiscal year 2016, Nancy calculated the following costs for Choco-rama’s manufacturing process. Beginning work in process inventory, $22,655 Ending work in process inventory, $28,207 Beginning raw materials inventory, $42,385 Ending raw materials inventory, $44,299 Raw materials purchased, $387,521 Office supplies purchased and used, $15,274 388,400 man-hours of factory labor incurred at $23.60/hour 14,200 man-hours of factory oversight labor incurred at $28.75/hour Administrative salaries, $392,000 Factory utilities, $18,500 Factory depreciation, $9,700 Factory repairs, $15,400

Answer 1

The Cost of Manufactured Goods 9,998,145

Step-by-step explanation:

The question is to determine Choco-rama's Cost of Goods Manufactured for the 2016 Fiscal Year.

CHOCO RAMA COST OF GOODS MANUFACTURED FOR THE 2016 FISCAL YEAR

Description Amount ($) Amount ($)

Opening Inventory of Raw materials 42,385

Add: Purchase of raw materials 387,521

Direct raw materials available 429,906

Subtract: Closing raw materials (44,299)

Raw materials in Production 385,607

Add:

Direct labour ($388,400 x $23.60) 9,166,240

Manufacturing overhead 451,850

The total manufacturing costs 10,003,697

Add: Opening Work-in-Progress 22,655

10,026,352

Subtract: Closing work-in-progress (28,207)

The Cost of Manufactured Goods 9,998,145