Question

The following information is from ABC Company’s general ledger: Beginning and ending inventories, respectively, for raw materials were $8,600 and $10,600 and for work in process were $20,600 and $22,600. Raw material purchases and direct labor costs incurred were $36,600 each, and manufacturing overhead applied amounted to $20,600.

Required:

Prepare a statement of cost of goods manufactured for ABC Company. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

$89,800

Step-by-step explanation:

ABC Company

Cost of goods manufactured statement

Beginning Raw material inventory $8,600

Add: Purchases $36,600

Raw material available for use $45,200

Less: Raw material ending inventory -$10,600

Raw material used $34,600

Add: Direct Labor Cost Incurred $36,600

Prime Cost $71,200

Add: Manufacturing Overhead Applied $20,600

Manufacturing Cost $91,800

Add: Beginning Work in process inventory $20,600

Cost of Goods to be manufactured $112,400

Less: Ending work in process inventory -$22,600

Cost of Goods manufactured $89,800