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 $ 22,000​ Ending raw materials inventory 25,000​ Raw material purchases 99,000​ Beginning work in process inventory 34,000​ Ending work in process inventory 44,000​ Direct labor 124,000​ Total factory overhead 99,000​ Beginning finished goods inventory 74,000​ Ending finished goods inventory 54,000​ 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:

First, we need to calculate the direct material used in production:

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 22,000 + 99,000 - 25,000

Direct material used= $96,000

Now, we can determine the cost of goods manufactured:

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

cost of goods manufactured= 34,000 + 96,000 + 124,000 + 99,000 - 44,000

cost of goods manufactured= $309,000

Finally, the cost of goods sold:

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

COGS= 74,000 + 309,000 - 54,000

COGS= $329,000