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28 May, 17:11

Keeton Company had the following dа ta:Cost of materials used $60,000Direct labor costs 58,000Factory overhead 33,000Work in process, beg. 29,000Work in process, end. 18,000Finished goods, beg. 32,000Finished goods, end 18,000Calculate the Cost of goods sold.

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  1. 28 May, 17:25
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    Cost of goods sold = $ 176,000

    Explanation:

    For calculating the cost of goods sold, first we have to prepare the cost of goods manufactured.

    Manufacturings Costs Incurred

    Materials $ 60,000

    Direct labour $ 58,000

    Factory overhead $ 33,000

    Total manufacturing costs $ 151,000

    Add: Opening Inventory Work in process $ 29,000

    Less: Ending work in process $ (18,000)

    Costs of goods manufactured $ 162,000

    to get the costs of goods sold this amount has to be adjusted for finished goods inventory changes.

    Cost of Goods Manufactued $ 162,000

    Add; opening Inventory Finished Goods $ 32,000

    Less: Ending Inventory Finished goods $ (18,000)

    Cost of goods sold $ 176,000
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