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31 July, 02:30

Calculate the cost of goods sold using the following information: Direct materials $ 298,500 Direct labor 132,000 Factory overhead costs 264,000 General and administrative expenses 85,500 Selling expenses 48,800 Work in Process inventory, January 1 118,500 Work in Process inventory, December 31 125,900 Finished goods inventory, January 1 232,100 Finished goods inventory, December 31 238,700

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  1. 31 July, 03:31
    0
    Cost of Goods Sold 680,500

    Explanation:

    Adding the cost component of materials, labor and overhead we got the total cost added during the period.

    Then, we work with the work in process to obtain the cost of good manufactured.

    Finally, with the cost of good manufactured and the finished goods inventory we solve for COGS

    cost added

    materials 298,500

    direct labor 132,000

    manufacturing overhead 264,000

    total cost added during the period 694,500

    WIP beginning 118,500

    cost added 694,500

    WIP ending (125,900)

    Cost of Goods Manufactured 687,100

    Finished Goods inventory beginning 232,100

    Cost of goods manufactured 687,100

    Finished Goods inventory ending (238,700)

    Cost of Goods Sold 680,500
  2. 31 July, 06:01
    0
    COGS = $680500

    Explanation:

    The cost of goods sold refers to the direct costs attributable to the production of the goods sold in a company. This amount includes the cost of the materials used in creating the goods along with the direct labor costs used to produce the goods. It excludes indirect expenses, such as distribution costs and sales force costs.

    COGS=Beginning Inventory+Production during period-Ending Inventory

    We need to calculate the production during the period.

    Cost of manufactured period = Beginning work in progress inventory + direct materials + direct labor + factory overhead - ending work in progress

    Cost of manufactured period = 118,500 + 298,500 + 132,000 + 264,000 - 125,900 = $687,100

    COGS = 232,100 + 687,100 - 238,700=$680500
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