Question

Glenville Company has the following information for April: Cost of direct materials used in production $50,000 Direct labor 56,000 Factory overhead 35,000 Work in process inventory, April 1 39,000 Work in process inventory, April 30 34,000 Finished goods inventory, April 1 25,000 Finished goods inventory, April 30 17,000 a. For April, determine the cost of goods manufactured. Using the data given, prepare a statement of Cost of Goods Manufactured.

Answer 1

Answer and Explanation:

The preparation of Cost of Goods Manufactured is shown below:

Glenville Company

Statement of Cost of Goods Manufactured

Work in progress inventory April, 1 $39,000

Cost of direct materials used in production $50,000

Direct labor $56,000

Factory overhead $35,000

Total manufacturing cost incurred in April $141,000

Total manufacturing cost $180,000

Work in progress inventory April, 30 $34,000

Cost of goods manufactured $146,000

($180,000 - $34,000)