Question

The following information is available for Elliot Company.

January 1, 2013 2013 December 31, 2013
Raw materials inventory $26,000 $30,000
Work in process inventory 13,500 22,200
Finished goods inventory 30,000 21,000
Materials purchased $170,000
Direct labor 220,000
Manufacturing overhead 180,000
Sales 800,00

Required:
Compute cost of goods manufactured $____________________

Answer 1

The cost of goods manufactured is $557,300

Step-by-step explanation:

In order to calculate the cost of goods manufactured we would have to make the following calculation:

cost of goods manufactured=Work in process inventory 1/1+Total manufacturing costs-Work in process 12/31

Work in process inventory 1/1)= $13,500

Total manufacturing costs=Direct materials used+Direct labor+Manufacturing overhead

Total manufacturing costs=166000+220000+180000=$566,000

Work in process 12/31=$22,200

Cost of goods manufactured=$13,500 +$566,000 -$22,200

Cost of goods manufactured= $557,300

The cost of goods manufactured is $557,300