Cost of Direct Materials, Cost of Goods Manufactured, Cost of Goods Sold Bisby Company manufactures fishing rods. At the beginning of July, the following information was supplied by its accountant: Raw materials inventory $40,000 Work-in-process inventory 21,000 Finished goods inventory 23,200 During July, the direct labor cost was $43,500, raw materials purchases were $64,000, and the total overhead cost was $108,750. The inventories at the end of July were: Raw materials inventory $19,800 Work-in-process inventory 32,500 Finished goods inventory 22,100 Required:

1. What is the cost of the direct materials used in production during July? $

2. What is the cost of goods manufactured for July? $

3. What is the cost of goods sold for July?

Question

Business

Spicy

28 January, 18:44

Cost of Direct Materials, Cost of Goods Manufactured, Cost of Goods Sold Bisby Company manufactures fishing rods. At the beginning of July, the following information was supplied by its accountant: Raw materials inventory $40,000 Work-in-process inventory 21,000 Finished goods inventory 23,200 During July, the direct labor cost was $43,500, raw materials purchases were $64,000, and the total overhead cost was $108,750. The inventories at the end of July were: Raw materials inventory $19,800 Work-in-process inventory 32,500 Finished goods inventory 22,100 Required:

1. What is the cost of the direct materials used in production during July? $

2. What is the cost of goods manufactured for July? $

3. What is the cost of goods sold for July?

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Answers (1)

Know the Answer?

Atticus Delacruz · Answer 1

1. $84,200

2. $224,950

3. $226,050

Explanation:

The computations are shown below:

1. Cost of the direct materials used would be

= Beginning Raw materials inventory balance + raw materials purchases - ending Raw materials inventory balance

= $40,000 + $64,000 - $19,800

= $84,200

2. Cost of goods manufactured would be

= Direct materials used + Direct labor cost + Manufacturing overhead cost + beginning work-in-process inventory - ending work-in-process inventory

= $84,200 + $43,500 + $108,750 + $21,000 - $32,500

= $224,950

3. Cost of goods sold would be

= Beginning Inventory + Cost of goods manufactured - Ending Inventory

= $23,200 + $ 224,950 - $22,100

= $226,050