Question

The following information is available for Sunland Company.

January 1, 2020 2020 December 31, 2020
Raw materials
inventory $22,250 $32,860
Work in process
inventory 15,470 18,560
Finished goods
inventory 30,780 21,290
Materials
purchased $154,500
Direct labor 225,290
Manufacturing
overhead 183,120
Sales revenue 902,310
Compute cost of goods manufactured.

Answer 1

Sunland Company

Cost of goods manufactured Schedule

For the year ended

Work in progress 15,470

Direct Materials

Raw material 22,250

Add: Raw material purchased 154,500

Total raw material available for use 176,750

Less: Raw material inventory 32,850

Direct material used 143,890

Direct labor 225,290

Manufacturing overhead 183,120

Total manufacturing costs 552,300

Total cost of work in progress 567,770

Less: Work in process inventory 18,560

Cost of goods manufactured 549,210