Question

Given the following data for Glennon Company, compute (A) total manufacturing costs and (B) costs of goods manufactured: Direct materials used $360000 Beginning work in process $40000 Direct labor 280000 Ending work in process 20000 Manufacturing overhead 330000 Beginning finished goods 50000 Operating expenses 430000 Ending finished goods 30000 (A) (B) $970000 $990000 $950000 $990000 $970000 $950000 $990000 $1010000

Answer 1

cost of goods manufactured= $990,000

COGS= $1,010,000

Step-by-step explanation:

Giving the following information:

Direct materials used $360000

Beginning work in process $40000

Direct labor 280000

Ending work in process 20000

Manufacturing overhead 330000

Beginning finished goods 50000

Operating expenses 430000

Ending finished goods 30000

First, we need to calculate the total manufacturing costs:

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

cost of goods manufactured= 40,000 + 360,000 + 280,000 + 330,000 - 20,000

cost of goods manufactured= 990,000

Now, we can determine the cost of goods sold:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 50,000 + 990,000 - 30,000= $1,010,000