Question

Xia Co. manufactures a single product. All raw materials used are traceable to specific units of product. Current information for company follows: Beginning raw materials inventory $ 11,000 Ending raw materials inventory 14,000 Raw material purchases 88,000 Beginning work in process inventory 23,000 Ending work in process inventory 33,000 Direct labor 113,000 Total factory overhead 88,000 Beginning finished goods inventory 63,000 Ending finished goods inventory 43,000 The company's cost of direct materials used, cost of goods manufactured and cost of goods sold is:

Answer 1

Instructions are below.

Step-by-step explanation:

Giving the following information:

Beginning raw materials inventory= $ 11,000

Ending raw materials inventory= $14,000

Raw material purchases= $88,000

Beginning work in process inventory= $23,000

Ending work in process inventory= $33,000

Direct labor= $113,000

Total factory overhead= $88,000

Beginning finished goods inventory= $63,000

Ending finished goods inventory= $43,000

First, we need to calculate the direct material used:

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 11,000 + 88,000 - 14,000

Direct material used= 85,000

Now, we can calculate the cost of goods manufactured:

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

cost of goods manufactured= 23,000 + 85,000 + 113,000 + 88,000 - 33,000

cost of goods manufactured= 276,000

Finally, we can determine the cost of goods manufactured:

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

COGS= 63,000 + 276,000 - 43,000

COGS= $296,000