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28 August, 20:44

Beg. of Year

End of Year

Raw Materials Inventory

$26000

$30852

Work in process inventory

$35000

$32867

Finished goods inventory

$14000

$28862

Purchases of DM

$73000

Direct Labor

$41484

Indirect Labor

$40000

Insurance on plant

$10000

Depreciation - plant building and equipment

$12747

Repairs and maintenance - plant

$4869

Marketing expenses

$76000

General & administrative expenses

$27354

What is Cost of Goods Sold?

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Answers (1)
  1. 28 August, 23:44
    0
    Answer: $164,519

    Explanation:

    Direct Material used = Beg. Raw Materials Inventory + Purchases of DM - End. Raw Materials Inventory

    = $26000 + $73000 - $30852

    = $68,148

    Direct labor cost = $41,484

    Manufacturing overhead = Indirect Labor + Insurance on plant + Depreciation - plant building and equipment + Repairs and maintenance - plant

    = $40000 + $10,000 + $12747 + $4869

    = $67,616

    Total manufacturing cost = Direct Material used + Direct labor cost + Manufacturing overhead

    = $68,148 + $41,484 + $67,616

    = $177,248

    Cost of goods manufactured:

    = Total manufacturing cost + Beg. Work in process inventory - End. Work in process inventory

    = $177,248 + $35000 - $32867

    = $179,381

    Cost of goods sold = Cost of goods manufactured + Beg. Finished goods inventory - End. Finished goods inventory

    = $179,381 + $14000 - $28862

    = $164,519
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