The Richards Company manufactures a single product. All raw materials used are traceable to specific units of product. Current information for the Richards Company follows: Beginning raw materials inventory $ 15,000 Ending raw materials inventory 17,000 Raw material purchases 95,000 Beginning work in process inventory 45,000 Ending work in process inventory 30,000 Direct labor 135,000 Total factory overhead 65,000 Beginning finished goods inventory 60,000 Ending finished goods inventory 50,000 The company's cost of raw materials used, cost of goods manufactured and cost of goods sold is:

Cost of raw materials=$93,000

Cost of manufactured period=$308,000

COGS = $318,000

Explanation:

A) Cost of raw materials:

We need to use the following formula:

Cost of raw materials = beginning inventory + purchase - ending inventory = 15,000 + 95,000 - 17,000 = $93,000

B) 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 = 45,000 + 93,000 + 135,000 + 65,000 - 30,000 = $308,000

C) 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

COGS = 60,000 + 308,000 - 50,000 = $318,000