Question

Beginning raw materials $ 5,500 Ending raw materials 4,000 Direct labor 12,250 Raw material purchases 7,400 Depreciation on factory equipment 6,500 Factory repairs and maintenance 3,300 Beginning finished goods inventory 10,200 Ending finished goods inventory 8,900 Beginning work in process inventory 5,700 Ending work in process inventory 6,300

Answer 1

Cost of Goods Manufactured 30,350

Cost of Goods Sold 31,650

Step-by-step explanation:

To find the Cost of Goods Manufactured and Cost Of Goods Sold we use the following format. By adding and subtracting as indicated we get the answers.

Beginning raw materials $ 5,500

Add Raw material purchases 7,400

Less Ending raw materials 4,000

Raw Materials Used 8,900

Add Direct labor 12,250

Add FOH 9,800

(Depreciation on factory equipment 6,500 )

(Factory repairs and maintenance 3,300 )

Total Manufacturing Cost 30,950

Add Beginning work in process inventory 5,700

Cost of Goods Available For Manufacture 36,650

Less Ending work in process inventory 6,300

Cost of Goods Manufactured 30,350

Add Beginning finished goods inventory 10,200

Cost of Goods Available for Sale 40550

Less Ending finished goods inventory 8,900

Cost of Goods Sold 31650

The Total FOH consists of (Depreciation on factory equipment 6,500 ) and (Factory repairs and maintenance 3,300 ).